Thursday, November 19, 2015

China Demand Outlook Hits Zinc on thursday

Zinc futures plunged by more than 1.5 per cent in the domestic market on Wednesday as investors and speculators exited positions in the industrial metal amid subdued physical demand for Zinc in the domestic spot market. Further, concerns that a deepening economic slowdown in China, the world’s biggest metals consumer may curb demand for Zinc also hit sentiment. China’s President Xi Jinping warned of heightened downside risks to growth in the world’s second biggest economy. A slowdown in the housing market recovery of China, the world’s biggest metals consumer, clouded the demand prospects for zinc, which is widely used in the home construction industry. New home prices climbed in 27 Chinese cities in October, down from 39 in September while prices fell in 33 cities, compared with 21 in September, amidst a supply glut which is hindering measures such as interest rate cuts and easier mortgage rules to revive the property market that has been in doldrums for the past few years. At the MCX, Zinc futures for November 2015 contract closed at Rs 99.85 per kg, down by 1.53 per cent after opening at Rs 100.8, against the previous closing price of Rs 101.4. It touched the intra-day low of Rs 99.4.
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