London 11/07/2016 - Base metals ended Monday LME trading mostly in positive territory - risk-on sentiment returned after last Friday's robust US jobs report, traders said.
"It has been a steady market - some follow-through from Friday and a better picture all round as the stock market is up again and the pound has bounced with a lot of the [UK political] uncertainty reduced today," a floor trader said.
On Friday, the US non-farm employment change at 287,000 was much higher than expectations of 175,000. The data lessened immediate concerns about the health of the US economy but market participants believe it was not strong enough for the Fed to lift rates the next few months, if at all this year.
"Prices are still ranging, it seems, but the dips are just a tad better supported," the trader added.
The pound rose today on news that home secretary Theresa May should become Britain's next prime minister after Andrea Leadsom quit the race, acknowledging she did not have the support needed. Later in the day, incumbent David Cameron announced he would resign on Wednesday, paving the way for May to take over the job on the same day.
In equities, the Shanghai composite index closed up 0.23 percent at 2,994.917 after Chinese data over the weekend was on target or softer, allowing the Chinese central bank to pursue loose monetary policy. Equity markets in Europe and the US are also higher today.
Traders will now turn their attention to China's import data, which is scheduled for Wednesday.
In the metals, nickel was the best performer today - it ended at $10,045 per tonne, up $165 on Friday's close. The metal found support on news that the Philippines has made official its audit of all operating mines in the country while suspending the approval of new mining projects.
While the government has already suspended two mining operations due to environmental issues, this failed to have a substantial impact when it was announced on Friday last week.
"Nickel is getting support from [the Philippines environmental audit] but this market looks very choppy in the short term as it is not established above or below $10,000 right now," a trader said.
Stocks rose a net 408 tonnes 377,736 tonnes but cancelled warrants jumped 5,964 tonnes to 118,764 tonnes - Kaohsiung cancellations increased 6,234 tonnes to 12,876 tonnes.
Copper concluded at $4,750, up $39.50, while availability dipped following a 7,300-tonne jump in cancelled warrants to 59,800 tonnes. Total stocks dipped 625 tonnes to 222,600 tonnes.
Meanwhile, workers at Anglo American's El Soldado copper mine in Chile started a strike after failing to reach agreement in contract talks, INTL FCStone analyst Edward Meir noted.
Aluminium at $1,653 was down $10. Chinalco, the largest Chinese aluminium manufacturer, announced plans to scale up its capacity to 1.5 million tonnes per year, citing growing local demand.
Stocks and cancelled warrants both fell 7,075 tonnes to 2,344,175 tonnes and 999,050 tonnes.
Zinc edged $2 lower to $2,140 even after stocks fell 650 tonnes to 439,525 tonnes while lead was up $2 at $1,819 with no changes to stocks.
Tin ended at $17,850/17,875, up $10; stocks edged five tonnes lower. Steel billet was last indicated at $300/325 and cobalt and molybdenum at $24,500/25,000 and $14,750/15,250 respectively.
(Additional reporting by Kathleen Retourne and Martin Hayes, editing by Mark Shaw)