Zinc futures plunged by Nearly 4 % in the Domestic Market

 

Zinc futures plunged by nearly 4 per cent in the domestic market on Monday as investors and speculators exited positions in the industrial metal after poor China factory and fixed asset investment data for August underscored concerns over the health of the world’s second biggest economy, darkening the demand outlook for Zinc, with China being the largest global consumer of the metal.

China's industrial output advanced 6.1 per cent in August 2015, year on year, trailing estimates of 6.5 per cent while urban fixed-asset investment, a key growth driver, expanded at the slowest pace in 15 years, at 10.9 per cent, year on year in the January-August 2015 period, and down from an annual 11.2 per cent rise in the first seven months of the year.

Weak physical demand for Zinc in the domestic spot market also hurt sentiment.

Traders cast aside data showing the biggest increase in Euro area industrial output since February, up 0.6 per cent in July, signaling a pickup in the 19-member economy.

At the MCX, Zinc futures for September 2015 contract closed at Rs 115.9 per kg, down by 3.98 per cent after opening at Rs 120, against the previous closing price of Rs 120.7. It touched the intra-day low of Rs 115.60.

 

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