Base metals continue to slump on bleak global demand outlook

MUMBAI: Base metals complex continued to decline on Monday as more troubles in European banking sector increased fears of a global slowdown.

On MCX, prices declined by an average 3% with nickel and lead leading the fall while copper and aluminium losing nearly 2%.

For copper and nickel prices, the slide has been one-sided with major support levels being broken.

���Considering the recent fall, there could be some consolidation on lower side, before prices rebound and resume a downtrend. For November copper on MCX Rs 260-258 per kg is seen as a near term support range, while nickel prices could move towards Rs 675-670 range in near term,��� said Harish Gallipeli, research head, Karvy Comtrade.

���Fears that no economy could remain an exception from a slowdown, as credit crunch spilled over, have caused heavy unwinding in base metal positions,��� he added.

Declines in lead and zinc, on the other hand, were gradual as the London Metal Exchange inventories continue to show support for these metals.

According to Gallipeli, zinc prices continue to find support as the metal is perceived to be oversold and hovers around key support levels. For lead, on the other hand, the downside could be supported by the news that China���s largest lead miner Yuagong announced a closure of its major mining facility.