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SINGAPORE - The most active zinc contract on the Shanghai Futures Exchange (ShFE) slipped to its lowest in three weeks on Wednesday, tracking a decline in London markets.
The zinc contract in Shanghai was down 1.8 percent at 21,845 yuan ($3,255.69) a tonne, as of 0206 GMT, after slipping to 21,715 yuan a tonne earlier in the session, while the benchmark zinc in London rebounded 0.5 percent.
Benchmark zinc ended 3.1 percent weaker in the previous session, its biggest daily fall since August, as a big inflow into the London Metal Exchange (LME) warehouses fanned expectations that a supply deficit would soon end.
"Zinc was under pressure for the second day in a row after another surge in inventories on the LME. This saw zinc futures fall over 3 percent and break below a strong upward channel it has been trading this year," said ANZ in a note.
Other base metals treaded water, as cautious investors eyed data on first-quarter economic growth in China, which is to be released later in the day.
FUNDAMENTALS
* Three-month copper on the London Metal Exchange rose 0.3 percent to $6,512 a tonne, while most-traded copper contract on the Shanghai Futures Exchange edged up 0.3 percent.
* A railway that carries zinc from major producers such as Glencore , MMG Ltd and South 32 across Australia's Outback is expected to reopen this month after it was damaged in floods.
MARKETS NEWS
* Asian share markets got off to a guarded start as investors waited anxiously for a raft of Chinese data that might show policy stimulus is finally gaining traction in the world's second-largest economy.
DATA/EVENTS
0200 China Urban Investment (ytd) YY March
0200 China Industrial Output YY March
0200 China Retail Sales YY March
0200 China GDP YY Q1
0830 UK CPI YY March
0900 EU HICP Final MM YY March
1230 US International Trade Feb
1300 Russia Unemployment Rate March
1800 Federal Reserve issues the Beige Book of economic
PRICES
Three month LME copper CMCU3
Most active ShFE copper SCFcv1
Three month LME aluminium CMAL3
Most active ShFE aluminium SAFcv1
Three month LME zinc CMZN3
Most active ShFE zinc SZNcv1
Three month LME lead CMPB3
Most active ShFE lead SPBcv1
Three month LME nickel CMNI3
Most active ShFE nickel SNIcv1
Three month LME tin CMSN3
Most active ShFE tin SSNcv1
($1 = 6.7098 Chinese yuan)
(Reporting by Mai Nguyen, Editing by Sherry Jacob-Phillips) ((mai.nguyen@thomsonreuters.com; +6568703435; Reuters Messaging: mai.nguyen.thomsonreuters.com@reuters.net))
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