London 22/08/2016 - Base metals finished LME trading on Monday in negative territory - data showing higher exports of both aluminium and copper from China soured sentiment.
Yesterday, China's General Administration of Customs reported the country's import of unwrought copper and copper alloys rose 4.1 percent year-on-year but was down 18.4 percent month-on-month at 310,000 tonnes in July. China's exports of aluminium fabricated products rose 9.9 percent year-on-year to 350,000 tonnes in July.
Adding to the downward slip was a stronger dollar - against a basket of salaries it was last at 94.58 - making dollar-denominated commodities more expensive.
"Prices rose in the early part of the week, as the greenback sank to eight-week lows against both the euro and the Swiss franc, but values began to lose altitude by week's end, as the dollar gained back some ground, particularly after the release of the July Fed minutes," INTL FCStone analyst Edward Meir said.
Mixed US data and signs that consumers there are growing more pessimistic have dampened the odds that the Fed will raise rates next month. But with only three meetings remaining for 2016, the Fed is unlikely to reach its initial objective of two rate rises.
This week investors will focus on the Federal Reserve's annual Jackson Hole symposium, which is punctuated by chairwoman Janet Yellen's speech on Friday.
In the metals, copper fell to its lowest since July 11 earlier at $4,735. It finished at $4,748.50 per tonne, down $49.50 on Friday's close. Business was fairly robust compared with previous summer-thinned sessions - more than 19,000 lots changed hands on Select by the kerb close.
In today's warehouse data, copper stocks jumped a net 18,750 tonnes to 229,375 tonnes, a move centred on Busan and Gwangyang and one that was widely expected. Cancelled warrants fell 2,050 tonnes to 57,325 tonnes.
Nickel fell to a low of $10,160 - its cheapest since July 12. It finished offered at $10,270, down $85, despite the continuing mining crackdown in the Philippines.
According to data from the International Nickel Study Group (INSG), the global nickel market was undersupplied by 36,800 tonnes in the first half of 2016. There had still been a supply surplus of 42,500 tonnes at the same time last year, Commerzbank noted.
Stocks climbed 180 tonnes to 373,692 tonnes and cancelled warrants dropped 396 tonnes to 111,948 tonnes.
Aluminium fell to a one-week low of $1,655 before it finished at an unchanged $1,667. Stocks fell 3,500 tonnes to 2,241,550 tonnes and cancelled warrants fell 5,000 tonnes to 935,025 tonnes.
Zinc edged $6 lower to conclude at $2,280 - stocks and cancelled warrants both fell 675 tonnes to 455,200 tonnes and 23,575 tonnes respectively. A backwardation has appeared on the benchmark cash/threes at $0.50 while cash/Sept was at a $5.75 backwardation.
There is one large warrant holder at 50-79 percent, LME data shows, while on the 'Tom' and cash position there was one each at 40-49 percent.
Lead was last bid at $1,852, down $31, with stocks climbing 875 tonnes to 187,900 tonnes. Tin closed at $18,485, down $55. Stocks fell 95 tonnes to 4,630 tonnes.
Steel billet was offered but not bid at $325 as was cobalt at $26,500. Molybdenum was last at $15,500/16,000. Molybdenum stocks and cancelled warrants both edged six tonnes lower to 36 tonnes and 24 tonnes respectively.
(Additional reporting by Ewa Manthey, editing by Mark Shaw)