Metals futures were mixed in Asia on Thursday in the midst of the summer lull, but Shanghai zinc futures perked up on the perception that prices had gone about as low as they could. Shanghai's most actively traded zinc contract, October, gained 1.4 percent to end the morning session at 15,525 yuan ($2,273) a tonne.
LME zinc slid 1.3 percent, after jumping in London on Wednesday as short-sellers covered positions on fears the market is oversold. Shanghai zinc futures have lost over 18 percent this year, pressured by ample spot supply and plentiful concentrate. But they have found resistance around 15,500 yuan ($2,270) a tonne, the point at which traders expect loss-making smelters to close.
Shanghai copper slipped and aluminium futures ticked up, with traders reporting generally bearish sentiment due to ample stocks and sliding crude oil. Crude oil hit a seven-week low on weak demand figures from the US.
Poor demand, huge inventories and sliding energy costs pushed aluminium to five-week lows in London on Wednesday, after futures hit an all-time high in early July on an announcement by Chinese smelters that they would cut output by 10 percent from planned levels. Nickel lost 1 percent in Asia on Thursday on renewed selling interest after it broke through $20,000 a tonne.