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Zinc nosedives on China turmoil

By Religare
|

Zinc futures tanked nearly 1.6 per cent in the domestic market on Monday as investors and speculators exited positions in the industrial metal as a worsening economic slowdown in China, the world's biggest metals consumer threatened to cut demand for Zinc.

China's stocks which crashed 11 per cent last week tumbled 8.5 per cent on Monday, registering their biggest one-day drop since 2007 as traders were left disappointed from a lack of fresh measures over the weekend to support equities. The China stock market crash threatened to spread to other parts of the world's second biggest economy, darkening the demand outlook for Zinc.

 

China's factory slump worsened in August with manufacturing activity contracting at the fastest pace in 77 months.

Weak physical demand for Zinc in the domestic spot market also forced investors to cut risky bets in the industrial metal.

At the MCX, Zinc futures for August 2015 contract closed at Rs per 115.75 per 1 kg, down by 1.57 per cent after opening at Rs 117.50, against the previous closing price of Rs 117.60. It touched the intra-day low of Rs 114.35.

Story first published: Tuesday, August 25, 2015, 12:20 [IST]
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