Zinc futures fell during morning trade in the domestic market on Tuesday as investors and speculators exited positions in the industrial metal amid weak physical demand for zinc in the domestic spot market. 

Traders cast aside data showing the quickest pace of expansion in Chinese services activity in 11 months in June, signaling an easing economic slowdown in the world’s biggest metals consuming nation, improving the demand outlook for zinc.

A gauge measuring China’s services activity climbed to 52.7 in June, up from 51.2 in May, with a reading above 50 signaling expansion. Zinc futures for July 2016 contract, at MCX, were trading at Rs 141.45 per kg, down by 0.70 % after opening at Rs. 141.85, against the previous closing price of Rs. 142.45. It touched the intra-day low of Rs. 141.35.