Soft physical demand, weak China demand outlook bites Zinc

 Zinc futures slid in the domestic market on Monday as investors and speculators exited positions in the industrial metal tracking weak physical demand for Zinc in the domestic spot market while concerns that demand from China, the world’s biggest metals consumer, may be curbed following the massive Yuan devaluations last week which will make the metal more expensive for buyers in the country, also soured sentiment. Further, China’s economic slowdown has deepened lately with exports and imports contracting sharply in July, while gains in industrial output, urban fixed asset investment and retail sales came in below estimates, signaling a gloomy outlook for industrial metals. Meanwhile, Japan’s economy shrank at an annualized pace of 1.6 per cent in the April-June 2015 quarter, following a 3.9 per cent expansion in Q1, also weighing on sentiment.  At the MCX, Zinc futures for August 2015 contract closed at Rs per 118.65 1 kg, down by 0.63 per cent after opening at Rs 119.20, against the previous closing price of Rs 119.40. It touched the intra-day low of Rs 118.40.                                                    Read More -  Base Metal Tips