Monday, October 5, 2015

Zinc futures Ended Lower in the Domestic Market

Zinc futures ended lower in the domestic market on Thursday as investors and speculators exited positions in the industrial metal amid soft physical demand for Zinc in the domestic spot market.

Further, fears that a worsening outlook in China, the world’s Huge metals consumer, may curb the demand for the industrial metal also weighed on sentiment as China’s factories remained in contraction mode as the China official PMI came in at 49.8 in September, tad below the neutral 50-mark, a sign that the country’s slowdown isn’t easing any time soon. Deepening factory-gate deflationary spiral, weak external demand and industrial overcapacity are weighing down China’s factories, raising fears that the economy may miss the 7 % growth target for this year.

At the MCX, Zinc futures for September 2015 contract closed at Rs 110.65 per 1 kg, down by 0.45 per cent after opening at Rs 111.55, against the previous closing price of Rs 111.15. It touched the intra-day low of Rs 110.05.

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