Zinc softens on subdued demand, global cues

July, August contracts shed 0.34% each on fears of declining demand from China

Zinc prices edged lower by 0.34% to Rs 103.10 per kg in futures trade today due to a weakening trend in the entire base metals in the global markets on concerns that demand may decline.

At the Multi Commodity Exchange, zinc for delivery in July declined by 35 paise, or 0.34%, to Rs 103.10 per kg, with a business turnover of 666 lots.

August zinc shed 35 paise, or 0.34%, to Rs 103.70 per kg, with a business turnover of 31 lots.

Analysts attributed the decline in zinc futures to sluggish domestic demand and a weak trend in copper and other base metals in global markets after China's premier said the momentum for a recovery in economic growth is not yet in place, raising concerns that demand may decline in the world's largest consumer.

Meanwhile, zinc declined 0.40% to $1,867 a tonne on the London Metal Exchange.