Zinc prices rise by 0.54% on higher demand

Zinc prices rose by 0.54 per cent on Friday as the traders enlarged their holdings tracking the steady global trend and the increasing domestic demand. Zinc futures for February 2012 contract, at MCX, were trading at Rs. 102.45 per kg, up by 0.54 per cent after opening at Rs. 102 against the previous closing price of Rs. 101.90. It touched the intra-day high of Rs. 102.70 till the trading. (At 02.41 PM today) Sentiment improved further as a result of upbeat US economy as new U.S. claims for unemployment benefits dropped to a fresh four-year low last week, offering evidence the jobs market recovery. The US Labour Department said 348,000 initial jobless claims were filed in the week ending March 17, down from a revised 353,000 in the previous week. Zinc is the fourth most widely used metal after steel, aluminum and copper in the world. Yesterday, prices fell as weak manufacturing data pointing to a slowdown in China and the euro zone dampened sentiment on the industrial metal. The headline flash HSBC/Markit manufacturing purchasing managers' index fell to a four-month low of 48.1 in March from 49.6 in February The Markit Eurozone PMI Composite Output Index fell from 49.3 in February to a three-month low of 48.7 in March.