Zinc futures up 0.46% on overseas cues, spot demand

NEW DELHI: Taking positive cues from the global market and better domestic demand, zinc futures prices today edged up by 0.46 per cent to Rs 141.90 per kg, as speculators created positions.

At the Multi Commodity Exchange, zinc for delivery in July up by 65 paise, or 0.46 per cent, to Rs 141.90 per kg, with a business turnover of 1,122 lots.

The metal for delivery in August also rose by 60 paise, or 0.42 per cent, to Rs 142.20 per kg, with a business turnover of 170 lots.

Globally, at the London Metal Exchange (LME) zinc for delivery in three months advanced one per cent to USD 2,359 per tonne, the highest since August 2011.

Marketmen said besides a firming trend at domestic spot market, metal's strength at the LME after falling inventory and an improving demand outlook spurred speculation that consumption will exceed supply, supported the upside in zinc prices at futures trade.

LME inventories for zinc fell for a 16th day to 656,675 tons yesterday, the lowest since December 2010, according to bourse data.