London 08/01/2016 - Base metals ended a volatile first week of the New Year mixed on the LME after the downturn in global equities ended but worries over China's economic health remain, market participants said.
Base metals came under renewed selling pressure this week, with copper and zinc both dropping to their lowest levels since 2009.
Seven-percent drops on the SCI on two days this week triggered a recently implemented circuit breaker. But following mass uncertainty and the onset of panic, China authorises suspended the tool on Thursday. Markets reacted favourably - the SCI ended 1.97 percent higher at 3,186.412 today.
"Attempts by Chinese policy makers to quell the downside equity rout added some respite for the jangled nerves of economic community," a trader said.
Today's main event was the release of the US non-farm employment report - the economy added 292,000 jobs in December, beating the forecast 202,000. As well, employment for October and November was revised up 50,000 for a net increase of 342,000 new jobs.
This was seen as a critical report after the Federal Reserve raised interest rates for first the time in nearly a decade. Market participants now see another rate increase in March, with a majority expecting one or two moves throughout 2016.
Market participants will now look to see what direction the market will open on Monday for further clarity.
Today, copper concluded at $4,485 per tonne, down $39 on Thursday's close. Volumes were sold - more than 16,000 lots changed hands on Select by the kerb close.
Stocks fell a net 1,350 tonnes to 236,650 tonnes and cancelled warrants at 177,126 tonnes were down 1,284 tonnes.
Aluminium ended at $1,492.50, a rise of $17.50. Stocks fell 5,900 tonnes to 2,871,100 tonnes and cancelled warrants dropped 5,400 tonnes to 1,055,825 tonnes.
Nickel at $8,550 was up $45. Stocks fell 252 tonnes to 438,576 tonnes but cancelled warrants dropped 1,284 tonnes to 177,126 tonnes.
Index reweighting kicked off today; nickel is seen as one of the key beneficiaries.
Zinc at $1,508 edged $2 higher. Stocks and cancelled warrants were both 975 tonnes lower at 455,200 tonnes and 51,875 tonnes respectively.
Lead at $1,620 was down $39.50; stocks slipped 100 tonnes to 191,175 tonnes.
Tin ended at an unchanged $13,750. Stocks rose 50 tonnes to 6,295 tonnes and cancelled warrants fell five tonnes to 575 tonnes.
Steel was last indicated at $185/235 and cobalt and molybdenum at $23,500/24,000 and $11,500/12,000 respectively.
(Additional reporting by Kathleen Retourne and Dalton Barker, editing by Mark Shaw)