Upbeat US employment data help metals rebound

LONDON — Metals recovered after sliding earlier on Friday, lifted by upbeat US wage data that dented the dollar and soothed inflation worries, although gains were capped by ongoing concerns that new US tariffs would stoke a trade war.

The dollar fell versus a currency basket and equities rose after data showed strong job additions in February but muted wage growth, indicating a gradual rise in inflation and helping temper expectations of faster interest rate increases.

However, concerns remained about US President Donald Trump’s decision to impose a 25% import tariff on steel and 10% on aluminum, with initial exemptions for Canada and Mexico.

China said it “resolutely opposed” the tariffs and that they would “seriously impact the normal order of international trade,” while the European Union said it would go to the World Trade Organization to impose its own measures if hit by the tariffs.

“The impact of tariffs on metals markets is small, ( as is) the impact of the tariffs in terms of US or global GDP. But if the tariffs spark an acceleration in trade restrictions and shave 1% or 2% off global GDP, that’s when they become very problematic,” said Bernstein analyst Paul Gait.

International Monetary Fund Managing Director Christine Lagarde said she feared a “tit-fortat” escalation of trade retaliation that would hurt business confidence and investment.

Benchmark London Metal Exchange (LME) copper contracts closed up 1.9% at $ 6,962 a ton, having touched a one-month low. Aluminum ended up 0.70% at $2,120 after hitting a two-and-ahalf month low.

Zinc, used to galvanize steel, ended up 1.5% at $3,277 after hitting a two-and-a-half month low.

The most traded steel rebar contract in Shanghai slumped by 3.7% to a three-and-a-half month closing low.

Stainless steel raw material nickel ended up 4.5% at $13,860, its strongest one day gain since mid- February, after LME data showed a 13% slide in on-warrant stocks to 201,240 tons.

Deliverable aluminum stocks in Shanghai Futures Exchange warehouses rose by 4,517 tons to a record 846,913 tons.

Among other industrial metals, lead ended up 1.7% at $2,376, having hit a five- and- a- half month low, while tin ended down 0.80% at $21,375. —