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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