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Zinc dropped as sentiment over China’s economic activity continues to be clouded.

Zinc witnessed a decline of -1.91%, settling at 220.9, as concerns over China’s economic activity persisted. China’s official PMI data revealed the fourth consecutive month of contraction in factory activity, contributing to investor disappointment and uncertainty about a turning point in China’s economic growth. 

The unexpected contraction comes despite the Caixin China General Manufacturing PMI unexpectedly holding at 50.8 in January, the same as December, beating market forecasts and marking the third straight month of growth in factory activity.

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