Base metals on the London Metal Exchange had a mixed afternoon at the close Wednesday, copper and aluminum unable to find much support from rebounding oil prices and improved economic data from the US and China. Zinc, tin and nickel all gained over 1% on Tuesday's close, as crude jumped as much as 5% on signs global production may be easing. After three days of declines, crude jumped early Wednesday after Kuwait's OPEC governor said there were signs major producers could reach an agreement to cap production this month. Oil added to gains in the afternoon as data released by the Energy Information Administration showed US crude inventories declined for the first time in two months in the week to April 1. Brent crude was up 4.8% to $39.69/bbl as of 1600 GMT, WTI 5.15% higher to $47.74/bbl. Data released by Caixin-Markit showed services-sector growth in China accelerated in March to 52.2 from 51.2 in February, meanwhile. The privately prepared survey said that, despite the improvement, the Chinese economy was riding "choppy waves" and needed to push forward with supply side reform. Services were also showed improved in the US, the sector expanding in March for the first time since October. The ISM report follows positive manufacturing data released Tuesday showing the first increase in growth since August. In its annual copper survey released Wednesday, Gold Fields Mineral Services said the refined global copper market recorded a 363,000 mt surplus in 2015, up 41% from a 257,000 mt surplus in 2014. Refined production growth slowed to 2.3% in 2015, but was outweighed by a modest rise in consumption, which shrank to 1.9%. GFMS forecast a 150,000 mt surplus for both 2016 and 2017, as well as a fifth year of price declines with London Metal Exchange three-month copper prices to average $4,850/mt in 2016. "Insufficient production cutbacks, higher output from the progeny of the last mine supply boom and lower Chinese demand growth as it transitions to a more consumer base economy," are all set to keep the the market prices low this year, GFMS said. Copper closed $13 higher at $4,788/mt in the kerb, aluminum down $7 to $1,515/mt. Lead was up $20 on Tuessday's close to $1,717/mt, nickel $110 higher to $8,590/mt, tin up $150 to $16,500/mt. Zinc was marginally lower on the day, down $4.50 to $1,808/mt. The minor metal contracts ended the kerb untraded, with the standard aluminum alloy contract last bid at $1,570/mt and North American aluminum alloy bid at $1,720/mt. Molybdenum was last bid at $12,000/mt and cobalt last bid at $23,500/mt.
