Zinc prices fell by Rs 0.60, or 0.66 per cent, to Rs 89.65 per kg today in futures trade after the metals melted down in global markets on worries about economic recovery. Subdued domestic demand also put pressure on the metal prices in futures market here.
At the Multi Commodity Exchange, zinc for July contract drifted by Rs 0.60, or 0.66 per cent to Rs 89.65 per kg, with a turnover of 56 lots. The metal for delivery in June contract also fell by Rs 0.55, or 0.62 per cent, to Rs 88.65 per kg, with a turnover of 1,438 lots.
Market analysts said weakness in entire base metals pack overseas, weighed down by warnings from the European Central Bank (ECB) and China about economic recovery, put pressure on the nickel prices.
The ECB said that euro zone banks face up to 195 billion euros in a "second wave" of potential loan losses over the next 18 months due to the financial crisis.
Meanwhile, at Shanghai, the metal plunged 70 yuan or 0.44 per cent at 15,820 yuan per tonne, while at the London Metal Exchange, it fell $21 or 1.08 per cent at $1,915 per tonne.
