Zinc futures spiked by almost 10 per cent in the domestic market on Friday tracking a bullish trend in the overseas market as investors and speculators booked fresh positions in the industrial metal after Glencore said that it would slash global zinc production.
The Switzerland-based Glencore announced that it will cut its annual zinc output by about 500,000 metric tons as it undertakes mine closures to reduce debt and restore its balance sheet, triggering a buying spree in the metal with traders fearing a supply shortage.
A pickup in physical demand for Zinc in the domestic spot market also bolstered the industrial metal.
At the MCX, Zinc futures for October 2015 contract closed at Rs 119.15 per 1 kg, up 9.82 per cent after opening at Rs 109.3, against the previous closing price of Rs 108.5. It touched the intra-day high of Rs 120.75.