Base metals largely finished softer on the London Metal Exchange (LME) on Tuesday, led by copper which gravitated towards the lower end of its current sideways range, traders said. The exception to the trend was nickel, which corrected higher after freefalling last week when it lost 11 percent.
"Copper didn't really have much going for it today - it is definitely stalling at the moment. It could just be the calm before the storm, if we get some end-quarter activity later this week," a trader said.
Copper sidled lower despite another decline in LME stocks to fresh 31-year lows, ending at $3,355 a tonne, down $31 from Monday's kerb close.
But the cash/threes backwardation also narrowed, ending around $230/250 from $260 on Monday.
LME data showed copper stocks fell 1,025 tonnes to 30,250 tonnes on Tuesday, and further declines were expected, as 8,600 tonnes is under cancelled warrant and awaiting removal.
The market's downside is also limited by the potential for supply disruption; in Zambia over government mine safety worries; the threat of strike action at Asarco's south-western US operations; and Placer Dome's Zaldivar mine in Chile, where the Cerro Colorado mine remains shut after this month's earthquake.
Aluminium extended a technical decline from the $1,750 level, closing at $1,722, down $19.50, and shrugging off confirmation by Hydro Aluminium that it would close its 71,000 tonne-per-year Stade smelter in Germany.
Analysts have said up to one million tonnes of Europe's smelter capacity could face closure due to high energy prices.
Nickel corrected up from the $14,500 level, closing at $14,650, up $125.
In the other metals, zinc was hit by CTA sales, with prices over two percent lower at $1,240.50, down $31.50. Lead was $2 lower at $939, while tin was at $7,325, versus $7,300.
Plastics futures were around contract highs, maintaining a recent bounce.
"The price moves are reflecting what is happening in physicals," a trader said.
Prices of the monomer feedstocks - ethylene and propylene - have started to harden after consistently falling throughout the year, against a background of recent producer cutbacks in Europe, Asia and North America.
September polypropylene (PP) was quoted at $1,005/1,015 a tonne, against Monday's closing evaluation of $1,007.50. Linear low-density polyethylene (LLDPE) for the same month traded at $1,010, a $5 gain.