London 21/07/2016 - Base metals were mixed on the LME on Thursday, with nickel and zinc the star performers - they surged to fresh highs while speculators piled in.
Nickel hit $10,900 per tonne for the first time since October last year and has risen 15 percent since the start of the month - participants will now look to see if it can get above the psychologically important $11,000 level. Zinc came within touching distance of $2,300 - it hit a fresh May 2015 high of $2,294.50.
Still, neither metal managed to close at these levels. Nickel finished at $10,760, still up $180 on Wednesday's close while concerns of supply disruptions in the Philippines continue to provide support. But those fears are 'overblown', the country's chamber of mines said.
Stocks fell 1,656 tonnes to 375,546 tonnes and cancelled warrants were down 1,074 tonnes to 115,116 tonnes.
Zinc ended at $2,254, up $8. Analysts see zinc as having the best fundamentals in the complex. Stocks and cancelled warrants both slipped 625 tonnes to 437,325 tonnes and 19,850 tonnes respectively.
In wider markets, the European Central Bank (ECB) said today that it would keep rates unchanged at zero - the news was largely priced after the Bank of England (BoE) earlier left rates steady.
In data today, weekly US employment claims for the week ending July 16 at 253,000 were again under the forecast of 265,000 and below the psychological 300,000 mark although the Philly Fed manufacturing index data disappointed at -2.9.
In the metals, copper hit $5,000 earlier and finished at $4,976, up $10. According to ICSG data, the global copper market recorded a deficit of 119,000 tonnes in the first four months of the year compared with a surplus of 13,000 tonnes in the corresponding period of last year. Meanwhile, the WBMS pegged the deficit in the first five months at 48,000 tonnes.
Stocks climbed a net 400 tonnes to 228,400 tonnes while cancelled warrants fell 850 tonnes to 76,100 tonnes.
Aluminium was the only metal to end in negative territory - it was last at $1,600/1,601, down $25. Earlier it fell to a session low of $1,598, after a surprise stock jump of 12,600 tonnes to 2,310,050 tonnes. The move was centred on Asia - stocks in Kaohsiung rose 15,875 tonnes to 28,375 tonnes.
Lead at $1,862 was $6 higher, with stocks and cancelled warrants both down 150 tonnes at 185,700 tonnes and 71,050 tonnes respectively, while tin at $17,850 was up $35 - stocks edged 35 tonnes higher to 6,020 tonnes.
Steel billet was indicated at $300/325 and cobalt at $25,000/25,500 while molybdenum was neglected. Molybdenum stocks and cancelled warrants both fell six tonnes to 78 tonnes and 18 tonnes respectively.
(Additional reporting by Ewa Manthey, editing by Mark Shaw)