Zinc futures up Rs 4.20 per kg on global cues

Zinc futures climbed Rs 4.20 to Rs 107.35 per kg today after speculators widened their bets on the back of a firming trend overseas amid a rising demand in the domestic spot market.

In futures trading at the Multi Commodity Exchange, zinc for delivery this month surged Rs 4.20 or 4.07% to Rs 107.35 per kg in a business turnover of 1,443 lots.

Also, metal for delivery in February contract gained Rs 4.05 or 3.90% to Rs 107.85 per kg with a business volume of 232 lots.

According to marketmen, a firming trend at the London Metal Exchange (LME), where zinc posted its longest rally since the start of September which led industrial metals higher, on an increase in shipments to China, the world's biggest user, influenced metal futures here.

Besides, uptick in demand at domestic spot markets from consuming industries supported the upside, they said.

Globally at the LME, zinc for delivery in three months climbed 5% to settle at $1,590 a metric ton in Tuesday's trade.

Chinese imports of zinc surged last month to the highest since May 2009 as buyers took advantage of low prices and bought in anticipation of further decline in the yuan exchange rate.

The country also imported the most refined copper since 2008.