Prices rebounded aggressively across the base metals complex ending close to six days of declines. Tin and Lead were the strongest climbers, both rising by 7%, while copper, Nickel and Zinc rose 4-5%.

The catalyst for this robust reversal came from hopes of decisive action to deal with the debt crisis in Europe, although indications of an apparent disagreement over Greek bail-out terms had surfaced by the end of the day, pointing towards a likely erosion of any short-term confidence. In terms of metals-specific news, it was announced by union officials that workers had postponed the start of a planned strike at Cerro Verde Copper mine in Peru (312Kty).

The union has postponed the strike until Thursday in order to hold last minute talks with the government and management to see if a deal can be struck at the last moment. Elsewhere in Peru, the provincial government in the Tacna region has decided to ask the national government to revoke the water licence Southern Copper needs to operate two of its mines located there (Toquepala mine 147Kty and Cajuone 157Kty).

The officials believe Southern Copper has used water in such an unsustainable manner as to promote desertification in the region. This issue may pose a challenge to the perceived largely conciliatory approach President Humala has taken so far since election with mining companies.