Zinc prices rallied close to decade-highs for the second time this week on Friday, leading mixed trading in base metals. The most traded zinc contract on the Shanghai Futures Exchange closed 2 percent higher at 26,150 yuan ($3,916.90) a tonne on Friday. ShFE copper ended 0.37 percent lower. ShFE lead lost 1.68 percent.
Traders said zinc was lifted by expectations of robust demand for steel in China. The metal is primarily used to galvanise steel. The gains came despite data showing China's home price growth slowed in July, reinforcing expectations that property price growth may stagnate over the course of the year, a negative for industrial commodities.
Chinese stockpiles of rebar stood at 3.78 million tonnes as of Aug. 11, less than half of this year's peak of 8.4 million tonnes reached in February, according to SteelHome consultancy. Dongying Fangyuan Nonferrous Metals Co., one of China's largest copper smelters, has closed the second stage of its smelter in Shandong province for maintenance, a company official said on Thursday.
China said on Thursday it will still allow imports of some kinds of steel and non-ferrous scrap as the world's largest commodities consumer outlined the first concrete details of its plan to curb waste imports as part of its war on pollution.