BASE METAL TIPS : Zinc prices soared by more than 2 per cent in the domestic market on Tuesday as investors and speculators booked fresh positions in the industrial metal amid a pickup in physical demand for zinc in the domestic spot market.
An improving US economic outlook brightened the demand outlook for the industrial metal. Latest economic indicators have signaled a pickup in the recovery in the world’s biggest economy which succumbed to a mild contraction in the first quarter of the year. While manufacturing growth in the US rebounded from a 20-month low, in July, capital spending picked up in June as orders for capital equipment rose, and home prices in leading cities climbed in May, bolstering demand for zinc which is used in manufacturing and construction activities.
Investors shrugged off worries over China, the world’s biggest metals consumer. Chinese shares sank 1.7% on Tuesday after posting the biggest one-day slide in eight years on Monday even as the country’s regulator vowed to step up support to the country’s bleeding stock market.
At the MCX, Zinc futures for July 2015 contract closed at Rs 126.75 per 1 kg, up by 2.5% after starting at Rs 124.10, against the last closing price of Rs 123.70. It touched the intra-day high of Rs 126.95.
An improving US economic outlook brightened the demand outlook for the industrial metal. Latest economic indicators have signaled a pickup in the recovery in the world’s biggest economy which succumbed to a mild contraction in the first quarter of the year. While manufacturing growth in the US rebounded from a 20-month low, in July, capital spending picked up in June as orders for capital equipment rose, and home prices in leading cities climbed in May, bolstering demand for zinc which is used in manufacturing and construction activities.
Investors shrugged off worries over China, the world’s biggest metals consumer. Chinese shares sank 1.7% on Tuesday after posting the biggest one-day slide in eight years on Monday even as the country’s regulator vowed to step up support to the country’s bleeding stock market.
At the MCX, Zinc futures for July 2015 contract closed at Rs 126.75 per 1 kg, up by 2.5% after starting at Rs 124.10, against the last closing price of Rs 123.70. It touched the intra-day high of Rs 126.95.
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