London 05/07/2016 - Base metals fell across the board on the LME on Tuesday when the US' return to the market after an extended weekend break coincided with Monday's rally running out of steam.
Expectations of further easing measures in the US, the EU and China helped propel several to multi-month peaks on Monday - the standout performances were tin and nickel, which hit respective 16-month and eight-month highs
While money managers and funds jumped in for the ride, today's trading was more subdued due to waning expectations on intervention and fading interest among investors.
Mining shares also succumbed to the pressure. Anglo American was last down 3.09 percent at 740.39p, Glencore lost 2.74 percent to 158p and Rio Tinto slipped 1.25 percent to 2,326.50p.
Still, there is the potential for further moves later this week - the US FOMC meeting minutes are due tomorrow and will be eyed for clues on interest rates while Friday will see the release of blockbuster US jobs data.
In the metals, copper, which peaked at a two-month high of $4,960 on Monday, closed at $4,817 per tonne, down $76 on the close, with today's warehouse inventory data also having a negative impact. Stocks jumped a net 10,525 tonnes to a three-week high of 198,925 tonnes due to a hefty 11,150-tonne warranting in Singapore.
Spreads were in a comfortable contango; the benchmark cash/threes increased to $18.75.
Aluminium closed at $1,655, a $5.50 loss - on Monday prices hit $1,672, also the highest for two months. Inventories fell further, dropping 6,825 tonnes at 2,368,250 tonnes, the lowest since early-January 2009.
Nickel remained lively following Monday's surge to a nine-month high of $10,410, swinging either side of $10,000. Business ranged down to $9,640 before prices settled at $9,705, a drop of $490. Inventories declined another 1,266 tonnes to 376,848 tonnes, a fresh low since late-October 2014.
Monday's price increases reflected fears that mines would be closed in the Philippines after the country's newly installed environmental minister said less than a third met environmental standards.
"The audit of Philippine mines should be completed in three to four weeks' time, yet it may take longer to close the mines," Commerzbank noted.
In others, tin closed at $17,700, a drop of $325 - on Monday the metal soared to $18,125, a level not seen for 16 months. Stocks, meanwhile, held unchanged at 6,050 tonnes, around their lowest for two months.
Zinc, having corrected lower from a 13-month best of $2,186.50, finished at $2,111, a $7 decline, with stocks down 350 tonnes at 441,750 tonnes.
Lead's last trade at $1,829 was $17 lower - yesterday prices reached $1,882.50, a four-month best. Its stockpile also fell 350 tonnes to 184,800 tonnes.
Steel billet was indicated at $300/325, cobalt at $24,000/24,500 and molybdenum at $16,500/17,000. There was a one-tonne drop in cobalt stocks to 644 tonnes.
(Additional reporting by Martin Hayes, editing by Mark Shaw)