LONDON: Most industrial metals slipped in thin trade on Friday, weighed by a stronger dollar, weak oil prices and concern about Europe’s economy after German exports tumbled, with zinc at its lowest in more than a week.

The dollar index climbed on remarks by Federal Reserve policymakers, making commodities priced in the greenback more expensive for buyers outside the United States.

German exports fell unexpectedly in July, posting their steepest drop in nearly a year, while earlier in the week industrial orders were weaker than expected.

“China has been stabilising, but now the worries are related to the US and the European manufacturing sector, which is slowing down again,” said Gianclaudio Torlizzi, partner at consultancy T-Commodity in Milan.

After a reading of China’s manufacturing industry beat expectations last month, markets will be watching for a sustained improvement in industrial production figures out next week. China’s consumer price inflation slowed to its weakest pace in almost a year in August, data showed.

Also weighing down base metals prices was a pull back in the price of oil, a significant input at mines.

Benchmark zinc on the London Metal Exchange closed down 1 percent at $2,291 a tonne, the weakest since Aug. 30. Zinc shed 3 percent for the week, its biggest weekly fall since mid-June.

“Whilst the Chinese traders continue to unwind length, both outright and relative value, there are some passive bids more than happy to mop up a bigger sell off,” Matt France, head of institutional metals sales in Asia for broker Marex Spectron, said in a note.

Zinc has been the top LME performer this year with gains of 42 percent after mine closures and suspensions raised the prospect of shortages.

LME three month copper slipped 0.7 percent to finish at $4,633 a tonne, after hitting a two-week top of $4,688.50 on Wednesday.

LME nickel added 0.3 percent to end at $10,370 a tonne, retreating from $10,440, the strongest since Aug. 16, ahead of an announcement due next week by the Philippines of the results of an environmental audit into mines that is expected to result in the suspension of more mines.

“Premia (for physical nickel) have risen only tentatively. Despite the market flipping into deficit, this suggests that nickel shortages are not acute as yet, a result of the supply overhang seen between 2012 and 2015,” metals strategist Michael Widmer of Bank of America Merrill Lynch said in a note.

Aluminium shed 0.8 percent to close at $1,578, tin dropped 1.4 percent to end at $19,300 and lead fell 1.2 percent to $1,902.—Reuters