Zinc prices declined by 0.55% to Rs 254.25 per kilogram in futures trading on Tuesday, as traders pared back positions amid weak demand signals from the spot market.

On the Multi Commodity Exchange (MCX), zinc contracts for July delivery dropped Rs 1.40 or 0.55% to Rs 254.25 per kg, with a total of 254 lots traded.

Analysts attributed the dip to reduced buying interest from consuming industries in the physical market, which led participants to scale down their exposure.