Zinc prices slid on Wednesday to hit their lowest in more than three weeks, as a firm dollar and weakening demand from the steel sector weighed on the market.

Three-month zinc on the London Metal Exchange (LME) eased 0.4% to $2,432 per metric ton by 0221 GMT, having fallen to a low of $2,430 earlier in the session, the weakest since March 4.

The most-traded May zinc contract on the Shanghai Futures Exchange (SHFE) shed 1.8% to 20,765 yuan ($2,873.33) a ton.

Earlier in the session, it lost as much as 2% to 20,740 yuan, the lowest since March 6.

Zinc inventories in LME and SHFE warehouses have been rising, pushing the discount of the LME cash zinc contract to the three-month contract to $50.83 a ton on Tuesday, the biggest since November 1991.

In top consumer China, a lack of sufficient capital has slowed the construction of infrastructure and property projects in the first quarter of 2024, weakening demand for zinc.

The dollar steadied in the wake of more strong US economic data.

Weak demand drives zinc to its lowest since July 2020

A stronger dollar makes the greenback-priced metals more expensive for other currency holders.

LME copper shed 0.5% to $8,822 a ton, aluminium declined 0.5% to $2,291.50, nickel edged down 0.2% at $16,605, lead fell 0.3% to $2,013.50 and tin lost 0.2% to $27,400.

SHFE copper was 0.3% lower at 71,950 yuan a ton, aluminium declined 0.9% to 19,370 yuan, nickel dropped 2.4% to 129,440 yuan, lead eased 0.3% to 16,140 yuan and tin edged down 0.3% to 222,790 yuan.