Zinc gains as China cancels export rebates

Base metals prices were mixed Thursday, with most higher on the session in London.

Zinc was $45 higher to $1,915 per tonne, a gain of 6 percent on the day after China announced that export rebates would be cancelled from 1 August, a move that could limit entry of zinc from China into world markets.

Still, London Metal Exchange zinc inventories added 3,000 tonnes on the day to 157, 325 tonnes, their highest level in almost two years.

Three-month copper was $30 higher to $8,060 per tonne on weakness in the US dollar and even though inventories added 4,450 tonnes to 142,400 tonnes, while September copper added 2 cents to $3.66 per pound in afternoon trade in New York.

Meanwhile, aluminium inventories remained at their highest levels in over four years, capping gains at $20 to $2,980 per tonne, while lead added $30 to $2,210 per tonne despite a 275-tonne gain in inventories, as total stockpiles remain at just 91,000 tonnes.

Nickel and tin went against the trend to gains, with tin falling $300 to $22,200 per tonne and nickel dropping $400 to $18,350 per tonne.

Just before the close of floor trade in New York, December gold was up $11.70 to $924 per troy ounce while September silver had added 25 cents to $17.71 per troy ounce and October platinum had gained $24.90 to $1,763 per troy ounce in afternoon trade.