Zinc slipped on Friday from a five-year high as funds reversed bets on higher prices after US data reinforced expectations interest rates will rise in December, but large deficits this year and next are expected to reinforce upward pressure.
Copper moved in the other direction, touching the highest levels since July as funds shifted into the metal and pre-set buying orders were triggered, a trader said.
Benchmark zinc closed down 1.6 per cent at $US2447 a tonne, down from an earlier high of $US2491.50. The metal used to galvanise steel hit $US2494 on Thursday, its highest since September 2011.
Lower supplies due to mine closures and firm demand are behind zinc's 70 per cent rise from its January low.
"Demand is expected to outstrip supply, producers have resisted ramping up output and there aren't any major zinc mines in the pipeline due to come on stream or being developed," said SP Angel analyst John Meyer.
Traders said funds had taken profits on long positions before and after US non-farm payrolls data, which showed a strong pace of hiring and effectively sealed the case for the US Federal Reserve to raise rates in December.
Higher US rates could boost the US currency and make dollar-priced metals more expensive for non-US firms.
Markets are also focused on the US Presidential election next week, which will also have an influence on the dollar.
A third-quarter report from Glencore on Thursday showed its zinc output down 30 per cent year-on-year, reflecting the cuts that took place in October last year.
Worrying for zinc bulls, however, was the quarter-on-quarter rise of 13 per cent to 282,700 tonnes.
Large zinc inventories in warehouses monitored by exchanges and other stocks not reported were also seen as a negative for prices.
Zinc stocks in LME approved warehouses stand at 449,350 tonnes and according to Macquarie analysts inventories outside exchanges total some 1.4 million tonnes, more than 13 per cent of estimated global consumption of about 14.5 million tonnes.
"The refined market is running a deficit, however, but that deficit is largely being sated by the still large pile of unreported stocks the zinc market has accumulated in recent years," ICBC Standard Bank said in a note.
Copper ended up 0.7 per cent at $US4991 after touching an intraday peak of $US5003, the strongest since July 13, setting off stops and some short-covering, a trader said.
Aluminium finished down 0.5 per cent at $US1722 and lead rose 0.4 per cent to $US2100.
Nickel dipped 0.2 per cent to close at $US10,460 while tin climbed 0.9 per cent to end at $US21,300 after touching $US21,535, the highest since September 5, 2014.