Zinc Bulls in control on firm physical demand

Zinc futures rose sharply in the domestic market during evening trade in the domestic market on Monday as investors and speculators booked fresh positions in the industrial metal amidst a pickup in physical demand for Zinc in the domestic spot market.

However, concerns that global output cuts may not be enough to offset weakening demand from China, the world’s biggest consumer of the metal, curbed gains in Zinc futures.

Moreover, demand for zinc from the world’s second biggest economy, China, is set to weaken this week due to the Lunar New Year holidays when markets, businesses and factories stay shut.

At the MCX, Zinc futures  for February 2016 contract is trading at Rs 114.65 per kg, up by 0.97 per cent after opening at Rs 113.35, against the previous closing price of Rs 113.55. It touched the intra-day high of Rs 115.75.