Concerns over reduced demand prospects from China, the world’s biggest metals consumer, took severe toll on Zinc prices which lost 2.5 per cent in the domestic market on Tuesday while softer physical demand for the metal in the domestic spot market also weighed on sentiment.
The steep devaluation of the Yuan last week which will make the metal more expensive for Chinese buyers may curb Zinc demand in the world’s second biggest economy which is poised to grow at the slowest pace in two decades this year. China’s stocks on Tuesday fell prey to the worst sell off in three weeks, shedding over 6 per cent of their value amid speculation of reduced state intervention to support the country’s beaten down equities.
Meanwhile investors cast aside data which showed that home prices in China rose in 31 out of the 70 cities tracked by a government survey, in July, signaling a housing rebound following the removal of property curbs and monetary easing.
At the MCX, Zinc futures for August 2015 contract closed at Rs per 115.70 1 kg, down by 2.5 per cent after opening at Rs 118.85, against the previous closing price of Rs 118.65. It touched the intra-day low of Rs 115.50.
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