MCX BASE METAL TIPS: Zinc futures slid more than 2 per cent during noon trade in the domestic market on Thursday as investors and speculators exited positions in the industrial metal amidst weak physical demand for zinc in the domestic spot market.
Further, a slowing global economy darkened the demand outlook for industrial metals as the World Bank cut the global growth forecasts for 2016 to 2.9 per cent from 3.3% estimated earlier as a slowdown in China prolongs a commodity slump while Brazil and Russia suffer steep recessions. China’s economic growth forecast was cut to 6.7 per cent in 2016 from 7 per cent estimated earlier, while the economy is set to slow further to 6.5 per cent in 2017.
Meanwhile, US services growth slowed in December and factory orders fell 0.2% in November, signaling a cooling recovery in the world’s biggest economy that threatens to curb metal demand. The gauge measuring services activity in the US fell to 55.3 last month from 55.9 in November, but remaining above the neutral 50-mark.
At the MCX, Zinc futures for January 2016 contract closed at Rs 100.75 per kg, down by 2.18 per cent after opening at Rs 102.1, against the previous closing price of Rupees 103. It touched the intra-day low of Rs 100.55. (At 12:28 PM).
Further, a slowing global economy darkened the demand outlook for industrial metals as the World Bank cut the global growth forecasts for 2016 to 2.9 per cent from 3.3% estimated earlier as a slowdown in China prolongs a commodity slump while Brazil and Russia suffer steep recessions. China’s economic growth forecast was cut to 6.7 per cent in 2016 from 7 per cent estimated earlier, while the economy is set to slow further to 6.5 per cent in 2017.
Meanwhile, US services growth slowed in December and factory orders fell 0.2% in November, signaling a cooling recovery in the world’s biggest economy that threatens to curb metal demand. The gauge measuring services activity in the US fell to 55.3 last month from 55.9 in November, but remaining above the neutral 50-mark.
At the MCX, Zinc futures for January 2016 contract closed at Rs 100.75 per kg, down by 2.18 per cent after opening at Rs 102.1, against the previous closing price of Rupees 103. It touched the intra-day low of Rs 100.55. (At 12:28 PM).
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