Zinc Price Today

Zinc MCX Price

Commodity trading refers to a market where different commodities and their derivative products are bought and sold. These commodities mainly fall into four categories: agriculture, livestock and meat, metal, and energy.

The Multi Commodity Exchange of India Ltd (MCX) is one of the top national commodity exchanges in India. It offers investors an option for diversifying their portfolios outside of traditional securities through the MCX commodity market.

Market-based risk management financial instruments such as zinc futures are available on the MCX platform. Producers, processors, marketers, exporters, etc., use zinc futures to increase efficiency and strengthen competitiveness.

*Note: Know more about on Commodities

Zinc Price for Last Days

The prices of zinc for the Last 10 days are mentioned in the table below:

Factors Influencing Zinc Prices in India

In India, the price of zinc is affected by the following factors:

Global supply and demand - Global conditions of supply and demand play a significant role in setting the price of zinc. Zinc prices may rise if there is high demand worldwide and a shortage of the metal. The price of zinc may fall, on the other hand, if there is a surplus of supply and relatively little demand globally.

Political stability - The price of zinc may be impacted by the turmoil in countries that are producing and exporting the metal. Political instability in an important zinc-producing nation might impact zinc supply and cause the prices to increase.

Costs of production - The cost of zinc may also be impacted by production costs. If zinc production costs go up, the price of zinc will automatically rise.

Economic conditions - Zinc rates are influenced by the state of the Indian and global economies. The hike in prices for zinc may result from an increase in demand during periods of economic expansion. During an economic slump, a decline in the demand for zinc may result in a drop in price.

Environmental laws - Regulations pertaining to the environment may have an effect on zinc prices. If new regulations are introduced that raise the price of production or lower the supply of zinc, prices may rise.

Currency exchange rates - Zinc prices may be affected by how the Indian rupee is valued in comparison to other currencies. India may see an increase in the cost of imported zinc if the rupee's value falls.

How are Zinc Prices Determined

Besides the demand and supply, zinc prices in India are determined by a variety of factors. The zinc spot price quoted on global spot markets decides the price of zinc in India. The rate at which investors can purchase zinc for immediate settlement on a spot market is known as the spot zinc price. The domestic zinc price is calculated by considering the price in the spot market.

The import costs, currency value, government subsidies, along with other internal and external market factors all have an impact on the price of zinc. The price of zinc frequently fluctuates as a result of the combination of these factors. In addition, the zinc price in India is based on the zinc prices quoted on the Multi Commodity Exchange (MCX).

Why Should You Invest in Zinc

Zinc is an essential metal that is used in large quantities all over the world. Additionally, it is used for trading and achieving predetermined investment objectives. The benefits associated with investing in zinc are as follows:

1. The relationship of commodities with other asset classes is inverse. The performance of other asset classes has no impact on commodities. Therefore, zinc is a great investment choice for diversification. Zinc investments might compensate for losses if other asset classes fail to perform well.

1. When a country experiences inflation, investments done in various asset classes, like equities, can temporarily lose a substantial amount. Since commodities share an inverted price relationship with the equity market, commodities help to protect your investments.
2. Multiple market factors often cause zinc prices to vary. Due to the volatility, investors can profit from the price variation between their costs and selling rates. In case the shifts in prices of zinc are positive, investors have a chance of making good profits over the long term.

How to Invest in Zinc

You can invest in zinc by opening a Demat account or a derivatives account, depending on your choice of investment. Here are the different methods of investing in zinc:

Physical form

You can make investments in physical zinc bullion in the form of ingots. For this, you need to contact zinc traders selling physical zinc. However, note that you will be responsible for incurring expenses for the physical zinc's storage and security, as well as for finding a buyer.

Stocks

Zinc investments can be done by buying stocks of companies involved in the production, supply, and extraction of zinc as well as related commodities. Opening a Demat account is the first step to make an investment in zinc stocks.

Zinc futures

Zinc futures, which are available on the MCX and quoted with the MCX zinc rates, are an option to invest in zinc. Zinc futures are a type of derivative contract that enables two parties to exchange a particular amount at a fixed rate on a specified future day. To make investments in zinc futures, a derivatives account is required.

ETFs

Zinc can be purchased via Exchange-Traded Funds (ETFs), which assemble a portfolio of securities and evaluate how a specific index is performing. Zinc ETFs are available for trading on several stock exchanges. If you wish to start investing in zinc ETFs, you need to first open a Demat account.

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