Zinc futures extend losses, down 0.70% on tepid demand

Falling for the second day, zinc prices eased further by 0.70 per cent to Rs 170.10 per kg in futures trade today as speculators engaged in trimming their positions, tracking a weak trend at spot market on muted demand.
Besides, slump in copper and other industrial metals at the London Metal Exchange (LME) too weighed on sentiments in futures trade.
At the Multi Commodity Exchange, zinc for delivery in May declined by Rs 1.20, or 0.70 per cent, to Rs 170.10 per kg, in a business turnover of 391 lots.
Likewise, the metal for delivery in far-month June traded lower by a similar margin to Rs 170.60 per kg in 17 lots.

Market analysts said offloading of positions by speculators owing to slackened demand in the spot market and a slump in the base metals pack at the LME after Moody's Investors Service downgraded China's credit rating and warned that the country's debt position will worsen as its economic expansion slows, mainly kept zinc prices down at futures trade.