Zinc futures tumble on China probe
13/06/2014 09:46
Zinc futures slumped in the domestic market on Thursday as investors and speculators exited positions in the base metal amid concerns that a probe into a warehousing financing fraud in China’s Qingdao port may crimp the demand for zinc as collateral. China’s State Reserve Bureau, along with Standard Chartered Plc, Citigroup Inc. and Standard Bank Group are investigating alleged fraud related to metals pledged to obtain financing. The probe may crimp zinc inventory financing, which is a source of demand. New local currency loans accelerated in China, the world’s biggest metals consumer, supporting the demand outlook for copper. China’s banks and financial institutions issued 870.8 billion new yuan loans in May, up from 774.7 billion yuan in the previous month. At the MCX, Zinc futures for June 2014 contract closed at Rs. 122.60 per 1 kg, down by 2.08 per cent, after opening at Rs. 125.30, against the previous closing price of Rs. 125.20. It touched an intra-day low of Rs 122.35
13/06/2014 09:46
Zinc futures slumped in the domestic market on Thursday as investors and speculators exited positions in the base metal amid concerns that a probe into a warehousing financing fraud in China’s Qingdao port may crimp the demand for zinc as collateral. China’s State Reserve Bureau, along with Standard Chartered Plc, Citigroup Inc. and Standard Bank Group are investigating alleged fraud related to metals pledged to obtain financing. The probe may crimp zinc inventory financing, which is a source of demand. New local currency loans accelerated in China, the world’s biggest metals consumer, supporting the demand outlook for copper. China’s banks and financial institutions issued 870.8 billion new yuan loans in May, up from 774.7 billion yuan in the previous month. At the MCX, Zinc futures for June 2014 contract closed at Rs. 122.60 per 1 kg, down by 2.08 per cent, after opening at Rs. 125.30, against the previous closing price of Rs. 125.20. It touched an intra-day low of Rs 122.35
