BASE METAL TIPS | Zinc futures soared by over 1 per cent in the domestic market on Tuesday as investors and speculators booked fresh positions in the industrial Base metal as a worsening contraction in China’s factory index raised speculation of further policy easing by officials to help stave off a hard landing in the world’s second biggest economy, bolstering the demand outlook for zinc, given that China is the world’s biggest metals consumer.
The official China factory gauge fell to the lowest level in three years at 49.6 in Nov from 49.8 in October, with a reading below 50 signaling contraction. Nov, marked the fourth straight month of contraction in China’s manufacturing activity.
Further, US construction spending surged to the highest level in eight years, up by 1 per cent in October from September, lifting the demand outlook for zinc, which is widely used in construction activities.
A pickup in Euro area manufacturing signaled a fastening recovery in the 19-member economy, boding well for the base metal. A Euro area factory gauge climbed to 52.8 in November from 52.3 in October.
At the MCX, Zinc futures for December 2015 contract closed at Rs 105.20 per kg, up by 1.25% after opening at Rs 104.45, against the last closing price of Rs 103.90. It touched the intra-day high of Rs 105.45.
The official China factory gauge fell to the lowest level in three years at 49.6 in Nov from 49.8 in October, with a reading below 50 signaling contraction. Nov, marked the fourth straight month of contraction in China’s manufacturing activity.
Further, US construction spending surged to the highest level in eight years, up by 1 per cent in October from September, lifting the demand outlook for zinc, which is widely used in construction activities.
A pickup in Euro area manufacturing signaled a fastening recovery in the 19-member economy, boding well for the base metal. A Euro area factory gauge climbed to 52.8 in November from 52.3 in October.
At the MCX, Zinc futures for December 2015 contract closed at Rs 105.20 per kg, up by 1.25% after opening at Rs 104.45, against the last closing price of Rs 103.90. It touched the intra-day high of Rs 105.45.
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