Zinc trading range for the day is 174.5-178.5.
* Zinc dropped as expectations of weaker demand from Chinese steel mills overpowered signs that the market is short of metal.
* Zinc prices have fallen 30 percent from a February high as investors anticipated a surge in refined zinc output after a clutch of new mine openings.
* The roughly 13.5 million-tonne-a-year zinc market had a 305,000 tonne deficit over January-August, according to the International Lead and Zinc Study Group.
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