London 20/06/2016 - Base metals rebounded on Monday on the LME on easing fears that the UK will vote to exit the EU in Thursday's referendum.
But trading remained subdued, with many market participants opting to stay on the sidelines until geopolitical uncertainies ease, traders said.
"The market has reacted to a less-uncertain outlook regarding the UK vote - equities are up as well. But business is nothing to get excited about and liquidity is going to get thinner as the week progresses," an LME trader said.
Industrial metals came under pressure last week when polls ahead the UK's June 23 EU vote indicated that the 'Leave' campaign had secured a lead of as much as 10 percent but the 'Remain' camp has since recovered some lost ground. Still, the outcome is far from certain, capping moves higher.
"The safe position is to be square and that's likely to be the trade call for now, and Thursday will be the watershed. Depending on what happens overnight and in Asia, Friday could very well be a day of massive volatility," a second trader said.
A softer dollar also underpinned prices - the dollar index was last at 93.64, down around 0.5 percent.
In the metals, copper concluded at $4,644 per tonne, up $92 on Friday's close. More than 17,000 lots changed hands on Select by the kerb close.
Stocks fell a net 1,900 tonnes to 194,025 tonnes and cancelled warrants climbed 2,600 tonnes 42,550 tonnes.
Meanwhile, CFTC data shows funds shorting and longs liquidating in the week to June 14 - the net fund short position rose 14 percent to 44,811 contracts, which traders said was a historic high.
Aluminium at $1,633 was up $18 after stocks fell 5,025 tonnes to 2,441,175 tonnes and cancelled warrants were down 8,525 tonnes.
Nickel rose to a six-week high in today's session after Norlisk Nickel forecast a 60,000-tonne deficit this year and further tightening in 2017. It was last at $9,280, up $215. LME inventories were down 330 tonnes at 385,908 tonnes.
Zinc at $2,010 was up $29. Its cash/threes spread moved back into contango of $9.25 from an earlier backwardation. Inventory moves were more routine after a large delivery into New Orleans sheds on Friday - stocks and cancelled warrants both fell 2,550 tonnes to 397,275 tonnes and 27,800 tonnes respectively.
Lead at $1,722 was up $29, with no change to stocks. Tin was the only metal in negative territory - it was last at $16,975, down $50. Stocks were unchanged but cancelled warrants rose 25 tonnes to 1,440 tonnes.
Steel billet was last indicated at $300/325 and cobalt and molybdenum at $23,500/24,000 and $16,500/17,000 respectively. Molybdenum cancelled warrants rose to 18 tonnes from zero.
(Additional reporting by Kathleen Retourne and Martin Hayes, editing by Mark Shaw)