ZINC
Zinc futures tumbled in the domestic market on Thursday, shedding more than 2.4 per cent, as investors and speculators sold off positions in the industrial metal amid tepid physical demand for zinc in the domestic spot market. Moreover, fears that a deepening economic slowdown in China, the world’s biggest consumer of the base metal, may curb zinc demand also spooked investors. New yuan loans issued by Chinese banks and financial institutions stood at 707.9 billion yuan in April, trailing analysts’ estimates of 903 billion yuan, underscoring weakness in the world’s second biggest economy. Other April indicators were also poor as manufacturing shrank at the fastest pace in a year in April while exports and import tumbled, and growth in industrial output, fixed-asset investment, and retail sales numbers missed analysts’ estimates. At the MCX, Zinc futures for May 2015 contract closed at Rs 146.55 per 1 kg, down by 2.43 per cent after opening at Rs 149.85, against the previous closing price of Rs 150.20. It touched the intra-day low of Rs 146.30 till the closing.
NATURAL GAS
Natural Gas futures extended an advance in the domestic market on Friday as investors and speculators weighed a below than expected US stockpile-build last week, signaling a pickup in demand for the fuel which is used to fire up power plants as cooling demand rises during peak summer months. US gas stockpiles climbed by 111 billion cubic feet to 1.897 trillion cubic feet in the week ended May 8, 2015, compared to an estimated rise of 116 billion cubic feet by analysts. Further, forecasts for warmer than average weather in the US in the coming days also bolstered the demand outlook for the weather-sensitive fuel. At the MCX, Natural Gas futures for May 2015 contract is trading at Rs 191.10 per 1 kg, up by 0.26 per cent after opening at Rs 191.20, against the previous closing price of Rs 190.60. It touched the intra-day high of Rs 191.50. (At 13:01 PM).
