Zinc down 0.5% on subdued demand, weak global cues

Zinc futures fell by 0.54% to Rs 138.60 per kg today as speculators reduced positions amid a sluggish domestic demand and weak global trend.

At the Multi Commodity Exchange, zinc for delivery in December eased by 75 paise, or 0.54%, to Rs 138.60 per kg in a business turnover of 23 lots.

Likewise, the metal for delivery in November traded lower by 70 paise, or 0.50%, to Rs 138 per kg in 418 lots.

Marketmen said the fall in zinc prices in futures trade was due to sluggish domestic demand in the spot market amid a weak trend at the London Metal Exchange after the European Commission cut growth forecasts for the euro area, dampening the demand outlook for industrial metals.