Tuesday, September 29, 2015

Zinc In High Gear Despite China fears

Zinc futures marked a bullish finish in the domestic market on Monday as investors and speculators booked fresh positions in the industrial metal amid firm physical demand for Zinc in the domestic spot market.A mild rebound in a regional US factory gauge signaled easing concerns over a manufacturing slowdown in the world’s biggest economy, brightening the demand outlook for industrial metals. The gauge measuring factory production in Dallas climbed to 0.9 in September from -0.8 in August, with a reading above 0 signaling expansion.However, the gains in the metal were curbed by fears that a worsening slowdown in China, the world’s second biggest metals consumer, may cap demand for Zinc. Industrial profits in China nosedived 8.8 % , year on year in Aug 2015, worsening from a 2.9 per cent drop in July 2015, signaling deepening woes of the world’s second biggest economy.

At the MCX, Zinc futures for September 2015 contract closed at Rs 107.7 per kg, up by 0.56 per cent after opening at Rs 107.65, against the previous closing price of Rs 107.1. It touched the intra-day high of Rs 108.5.

Read More – Zinc News