Zinc futures closed lower on Wednesday amid concerns that the worsening Eurozone debt crises may curb the near-term demand for industrial metals such as zinc. Sentiment weakened after the European Central Bank revealed that its balance sheet soared to a record high 2.73 trillion euro last week on record lending to Eurozone banks amid the deepening debt crises.
A stronger dollar also curbed the demand for the base metal by the making the commodity more expensive for those holding other currencies.
Sentiment also weakened after a report said that industrial production in Japan contracted 2.6 per cent in November 2011, compared to the previous month as overseas demand weakened The price of December 2011 contract fell as much as 1.69 per cent at Rs 95.90 per kg at the MCX.
Zinc futures, for the December 2011 contract, at the MCX, closed at Rs 96.10 per kg, down by 1.49 per cent, after opening at Rs 97.90, against a previous close of Rs 97.55. It touched an intra-day low of Rs 95.90.