LONDON: Zinc prices bounced after touching a three-week low on Tuesday as investors bet lacklustre demand would recover in top metals consumer China, while copper hit a one-week low.
"We remain in a holding pattern across the complex, largely tied to how on-shore (Chinese) demand conditions are going to evolve over the next month or two. That's really the key to the outlook," said Nicholas Snowdon, metals analyst at Standard Chartered in London.
"The physical markets for the majority of the metals at a refined level remain very soft and the longer we go on without Chinese demand picking up, the more pressure there will be on prices," he added.
"We still think the zinc refined market will tighten up in the second quarter."
ZINC: Benchmark London Metal Exchange zinc had gained 1.4 percent to $2,746.50 a tonne by 1430 GMT, recovering from a low of $2,702, the weakest since March 14, and after falling 2.2 percent on Monday.
ZINC SPREAD: A widening of LME zinc spreads indicated adequate supply of refined metal in the market. The discount of LME cash zinc to the three-month contract moved to $27 a tonne, the biggest discount since October 2015.
SHFE: The Shanghai Futures Exchange was closed for a public holiday and will reopen on Wednesday.
COPPER: LME copper rose 0.2 percent to $5,762.50, after slipping to its lowest since March 27 at $5,730. On Monday, it broke below the 100-day moving average at $5,785, and ended with a 1.5 percent loss.
ANTOFAGASTA: The world's copper market could see a small shortage this year, but the price outlook is uncertain, as risk factors include the possibility of protectionist policy from the United States, the head of miner Antofagasta said.
ALUMINIUM: The LME price dipped 0.4 percent to $1,945. Alastair Munro at broker Marex Spectron said it had the biggest speculative long of the complex at 41 percent of open interest, close to the multi-year high of 43 percent. LME stocks  fell 14,250 tonnes to the lowest since December 2008.
ALUMINIUM TECHNICALS: Consolidation expected this week, but later aluminium is likely to target $2,000, said Commerzbank technical analyst Axel Rudolph in a note. "We will retain our short-term bullish forecast while no drop below the March low at $1,848 is seen."
PRICES: Lead added 0.7 percent to $2,302, nickel gained 1 percent to $9,945 and tin dipped 0.2 percent to $20,005.
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