London 02/09/2016 - Base metals apart from aluminium ended LME trading on Friday in positive territory after a mixed US jobs report made a near-term interest rate rise unlikely.
Zinc, lead and tin all hit fresh 2016 highs again in today's session after data showed the US economy added 151,000 jobs in august, missing the expected 186,000, while the employment rate edged up to 4.9 percent from 4.8 percent.
Still, the previous month's reading was revised 20,000 higher and average hourly earnings month-over-month ticked up 0.1 percent although this was below the forecast 0.2 percent.
As well, the trade balance in July at -$39.5 billion was better than the expected -$43 billion. US factory orders at 1.9 percent missed the forecast of 2.1 percent but this was the highest in nine months and better than the previous month's downwardly revised -1.8 percent.
In the wake of today's numbers, most market observers do not foresee an increase in the Federal Funds rate till 2017.
"The estimated probability of a September Fed rate increase is likely to drop further in the near-term, which will put downward pressure on the dollar and US real rates," FastMarkets analyst Boris Mikanikrezai said.
"Base metals are less affected by the report but we think that a further fall in the dollar could provide some support in the days ahead," he added.
The dollar index was last slightly higher at 95.89.
As well, a G20 meeting is taking place this weekend in China but it is likely to have a limited market impact, market participants noted.
In the metals, copper concluded at $4,628 per tonne, down just $2 on Thursday's close. Around 13,000 lots changed hands on Select.
Stocks rose for the ninth consecutive day, up a net 13,725 tonnes at 318,500 tonnes. Again, the move was centred on Asia - Port Klang inventories rose 12,650 tonnes to 28,925 tonnes and Gwangyang 1,250 tonnes to 46,700 tonnes. Cancelled warrants were up 1,175 tonnes to 40,150 tonnes.
Aluminium ended at $1,594, a drop of $21 and its weakest since the end of July on worries about oversupply. More than 16,000 lots changed hands on Select - the highest in the complex today.
Stocks fell 6,975 tonnes to 2,220,425 tonnes while cancelled warrants jumped 23,250 tonnes to 915,525 tonnes - a move centred on Singapore.
Nickel concluded above $10,000 - it was last at $10,060, up $150. Stocks fell 666 tonnes to 368,430 tonnes while cancelled warrants increased 2,232 tonnes to 112,458 tonnes.
Zinc climbed to its fresh 2016 high to reach its strongest since May 2015 - it was last at $2,363, $25 higher. Tightness remains a feature - the benchmark cash/threes was last at a backwardation of $4.75. Both stocks and cancelled warrants were down 575 tonnes to 450,525 tonnes and 21,600 tonnes respectively.
Lead was around its strongest since June 2015 - it ended at $1,943, up $13, with stocks unchanged at 187,275 tonnes.
Tin also climbed to a fresh 2016 high today - at $19,325 it was up $175, its strongest since January 2015. Stocks were unchanged at 4,460 tonnes.
Nearby spreads have tightened recently, with cash-threes back in a backwardation of $24 compared with $9 back a week ago.
Steel billet was last indicated at $300/325 and cobalt and molybdenum at $25,500/26,000 and $16,000/16,500 respectively.
(Additional reporting by Ian Walker, editing by Mark Shaw)