Zinc futures down on profit-taking, global cues

Zinc prices drifted by Rs 0.70 or 0.73 per cent to Rs 94.80 per kg today in futures trade, as traders booked profits amid weak trend overseas. Subdued demand at the physical market also put pressure on the metal prices at futures market here.

At the Multi Commodity Exchange, zinc for May contract shed Rs 0.70, or 0.73 per cent to Rs 94.80 per kg, clocking a turnover of 1,183 lots. The metal for delivery in June contract also fell by a similar margin to Rs 95.60 per kg, in a business turnover of 98 lots.

Market analysts said, weakness in copper and other base metals in global market after a higher-than-expected rise in China's consumer inflation and subdued demand for the metal put pressure on the zinc prices at futures market here.

Meanwhile, at Shanghai, the metal traded 50 yuan or 0.29 per cent lower at 16,930 yuan per tonne, while at the London Metal Exchange, it fell $10, or 0.47 per cent at $2,129 per tonne.

Analysts said that besides subdued trend at spot market, weak trend at Shanghai also led to a decline in zinc futures prices.