June 29, 2012

Zinc prices down for three straight days

As the investors were concerned that the European summit this week will not be able to discuss the debt crisis after German Chancellor Angela Merkel disregarded the proposal of common euro zone bonds, zinc prices continued its downward trend, falling for the third day on Wednesday (June 28).

Zinc futures for June 2012 contract, at MCX, were trading at INR100.55 (US$1.79) per kilogramme, down by 1.08% after opening at INR101.65 (US$1.81) against the previous closing price of INR101.70 (US$1.8). It touched the intra-day low of INR100.20 (US$1.78) till the trading.

Sentiment weakened further as a result of a surge in the zinc stockpiles at the London Metal Exchange (LME) on account of the weak demand for the commodity. LME zinc stocks rose by 1,525 tonnes to 995,425 tonnes as on June 27, 2012.

Moreover, prices also fell as the traders offloaded their holdings on account of the approaching monthly expiry amid a weakening trend overseas.

Major refined zinc exporting countries are Canada, Australia and Rep. of Korea, while major refined zinc importing countries are China, USA and Germany.