Zinc drops by 0.3% on muted demand

Zinc futures fell 0.26% to Rs 116.15 per kg today as speculators reduced positions amid sluggish domestic demand and weak global trend.

At the Multi Commodity Exchange, zinc prices for delivery in September eased by 30 paise, or 0.26%, to Rs 116.15 per kg in a business turnover of 36 lots.

Likewise, the metal for delivery in August traded lower by 25 paise, or 0.22%, to Rs 115.45 per kg in 1,067 lots.

Analysts said the fall was due to slack domestic demand in the spot market amid a weak trend in base metals at the London Metal Exchange amid concern that demand may falter in China as an equity rout resumed.