Zinc futures edge 0.20% higher on firm Asian cues

Zinc prices edged higher by 0.20 per cent to Rs 178.30 per kg in futures trade today as participants built up fresh positions, taking positive cues from the Asian markets.

At the Multi Commodity Exchange, zinc for delivery in August edged up by 35 paise, or 0.20 per cent, to Rs 178.30 per kg in a business turnover of 1,722 lots.

Likewise, the metal for delivery in September contracts was up by 15 paise, or 0.08 per cent, to Rs 178.30 per kg in 130 lots.

Analysts said fresh positions created by traders in line with a firm trend in Asian markets as inventories in China hit their lowest in a decade.

Zinc inventories in warehouses monitored by the ShFE ZN-STX-SGH fell 11.8 per cent last week to 30,800 tonnes, their lowest since October 2007. Stocks in warehouses approved by the LME have fallen for eight straight days.

Meanwhile, the most-traded zinc contract on the Shanghai Futures Exchange, for October, climbed 2.2 per cent to 21,385 yuan (USD 3,111.00) a tonne, its highest since August 10.

However, the London Metal Exchange is closed today for a public holiday.