Zinc rises 0.5% on global cues, spot demand

Speculators create fresh positions taking cues from overseas markets

Taking positive cues from overseas markets, zinc futures edged up by 0.51% to Rs 138.60 per kg today after speculators created positions.

Besides, better domestic demand supported the upside.

At the Multi Commodity Exchange, zinc for delivery in July contracts were up by 70 paise, or 0.51%, to Rs 138.60 per kg, with a business turnover of 1,145 lots.

August zinc traded higher by 60 paise, or 0.43%, to Rs 139.20 per kg in a turnover of 29 lots.

Traders said besides rising spot demand, a firming trend in the metal overseas supported the upside in zinc prices at futures trade here.

Overseas, zinc prices climbed to trade at a 35-month high amid shrinking inventories after economic growth expanded more than estimated in China, the world's biggest consumer of base metals.

Globally, zinc for delivery in three months rose 0.6% to $2,311.75 a metric tonne at the London Metal Exchange (LME).

Meanwhile, LME stockpiles of zinc fell for the 12th day to 658,475 tonnes, the lowest since December 2010, daily bourse data showed yesterday.