Zinc falls on demand concern amid struggle to maintain growth
Post Date: 15 Apr 2013 Viewed: 340
Bloomberg reported that zinc fell in London, paring the first weekly advance in nine, on concern about prospects for demand as economies struggle to maintain growth.
According to economist’s survey, figures on April 15 will show China’s economy expanded at an 8% annual pace last quarter slower than projected in February. The country is the world’s biggest zinc consumer. UK construction slid 7% on the year in February and Indian industrial output dropped from January.
Mr Pengjiang Richard Fu director for Asian commodities trading at Newedge Group SA in London said that “Ahead of the China Q1 GDP figure on Monday the market showed caution. Copper eased down a bit.”
Zinc for delivery in 3 months declined 1.1% to USD 1,892 per tonne on the London Metal Exchange leaving prices up 0.4% this week. Copper retreated 0.5% to USD 7,575 per tonne and the metal for delivery in May fell 0.4% to USD 3.419 a pound on the Comex in New York.
The International Zinc Association said that zinc which protects steel from corrosion is used extensively in the construction industry for roofing, wall cladding and gutters. India was the world’s third-biggest zinc user last year.
According to the International Lead and Zinc Study Group, exports from China, also the leading global consumer of copper, rose less in March than estimated by analysts and growth in manufacturing was weaker than projected.
UBS AG said that declines may be limited for copper after a pit wall collapsed April 10 at Rio Tinto Group’s Bingham Canyon mine in the US. Lost production stemming from the slide may wipe out a surplus of the metal predicted for this year.