Zinc up by 3.6% in line with global trend

Zinc futures climbed 3.78% to Rs 112.60 per kg today after speculators built up bets on the back of a firming trend overseas amid rising demand in the domestic spot market.

In futures trading at the Multi Commodity Exchange, zinc for delivery in October surged Rs 4.10, or 3.78%, to Rs 112.60 per kg, in a business turnover of 4,848 lots.

Also, metal for delivery in November contracts gained Rs 3.95, or 3.60%, at Rs 113.60 per kg, with a business volume of 165 lots.

According to marketmen, a firming trend in metal at the London Metal Exchange (LME) after Glencore Plc announced a plan to cut output by about a third, adding to signs that some commodity producers are willing to scale back supplies to combat slumping prices and boosting the prospects for a global deficit.

Furthermore, uptick in demand at domestic spot markets from consuming industries too supported the upside in metal prices, they said.

The metal used to galvanize steel jumped as much as 4.8 percent to $1,747 per tonne at the LME, the highest since September 18.