Zinc succumbed to losses in the domestic market on Tuesday as investors and speculators exited positions in the industrial metal amid fears that a worsening economic slowdown in China, the world’s biggest metals consumer may curb demand for zinc.
An official factory gauge for China plunged to the lowest level in three years at 49.7 in August, below the mark of 50 that separates contraction and expansion. Meanwhile, a private factory gauge contracted at the fastest pace in more than six years in August 2015 as the PMI tumbled to 47.3 from 47.8 in July.
China’s benchmark index, the Shanghai Composite plummeted by over 1 per cent on Tuesday, following up on Monday’s losses of 0.80 per cent as a continued slump in stocks in China threatened to signal deep-rooted problems in the country’s economy, darkening the demand outlook for zinc.
Meanwhile, a Euro area manufacturing gauge fell to 52.3 in August from 52.4 in July, signaling a slowdown in the 19-member economy, clouding the demand outlook for the metal.
At the MCX, Zinc futures for September 2015 contract closed at Rs per 120.55 per 1 kg, down by 0.62 per cent after opening at Rs 120.90, against the previous closing price of Rs 121.30. It touched the intra-day low of Rs 119.55.
An official factory gauge for China plunged to the lowest level in three years at 49.7 in August, below the mark of 50 that separates contraction and expansion. Meanwhile, a private factory gauge contracted at the fastest pace in more than six years in August 2015 as the PMI tumbled to 47.3 from 47.8 in July.
China’s benchmark index, the Shanghai Composite plummeted by over 1 per cent on Tuesday, following up on Monday’s losses of 0.80 per cent as a continued slump in stocks in China threatened to signal deep-rooted problems in the country’s economy, darkening the demand outlook for zinc.
Meanwhile, a Euro area manufacturing gauge fell to 52.3 in August from 52.4 in July, signaling a slowdown in the 19-member economy, clouding the demand outlook for the metal.
At the MCX, Zinc futures for September 2015 contract closed at Rs per 120.55 per 1 kg, down by 0.62 per cent after opening at Rs 120.90, against the previous closing price of Rs 121.30. It touched the intra-day low of Rs 119.55.
Read more - Zinc tips
0 comments:
Post a Comment