BASE METAL TIPS : Zinc futures extended a retreat in the domestic market on Friday as investors and speculators exited positions in the industrial metal amid weak physical demand for zinc in the domestic spot market.
Manufacturing movement in China suffered the steepest decline in 15 months in July, offering a bleak picture of the fast deteriorating health of the world’s second biggest economy, darkening the demand prospects of industrial metals such as Zinc, given that China is the biggest consumer of metals in the world.
The China Manufacturing PMI fell to 48.2 in July from 49.4 in June, with a scanning below 50 directing contraction, Market Economics said on Friday, pushing Copper prices lower in noon trade.
Further, a surprise drop in new home sales in the US in June signaled diminished demand prospects for the metal widely used in construction activity. US new home sales slid to a seven-month low, falling by 6.8 per cent to a 482,000 annualized rate in June.
At the MCX, Zinc futures for July 2015 contract closed at Rs 125.4 per 1 kg, down by 0.75 per cent after starting at Rs 126.65, against the previous closing price of Rs 126.35. It touched the intra-day low of Rs 124.80.
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