Zinc Bites the Dust on weak physical Demand

Zinc futures plunged by over 1 per cent during noon trade in the domestic market on Monday as investors and speculators exited positions in the industrial metal amidst weak physical demand for Zinc in the domestic spot market.

A worsening rout in China’s equities threatened to signal deep-rooted problems in the world’s second biggest economy, clouding the demand outlook for industrial metals. China’s benchmark stock market index, the Shanghai Composite slid 3.36 per cent on Monday as traders reacted to weaker than expected December inflation numbers.
 

China’s factory-gate prices fell for a record 46th month on the trot in December 2015, down 5.9 per cent, year on year while consumer inflation remained at about half of the government’s 2015 target, signaling a worsening slowdown in the world’s second biggest economy.
 

At the MCX, Zinc futures for January 2016 contract closed at Rs 99.65 per kg, down by 1.09 per cent after opening at Rs 100.7, against the previous closing price of Rs 100.75. It touched the intra-day low of Rs 99.6