Futures contracts of zinc and nickel rose sharply in the MCX tracking the benchmark three-month contracts on the LME.The contracts rose on the London bourse as China, the world's largest consumer of base metals, is reportedly taking swift action against illegal steel units, analysts said. This is seen boosting demand from existing units. Zinc and nickel are major raw materials used to manufacture stainless steel.Hebei province, a major steel-producing region in China, has shut 10.53 mln tn capacity of illegal steel-producing units and 12.26 mln tn of illegal iron-producing units during Jan-Jul, the local government said in a release on Wednesday. Higher prices of steel in the past few weeks have lifted the three-month contract of zinc on the LME to a 10-year high.
Source: Newswire
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