Base metals futures bounced in early trades on Friday on the back of better than expected results seen in Euro zone surveys, raising hopes for a strong demand scenario. But profit taking came in and pressurized Copper and Zinc prices which had risen significantly in the recent rally.

Base metals on MCX settled slightly higher on Saturday. Aluminium futures witnessed the sharpest gain, rising by about
0.5 percent.

Japanese copper wire and cable shipments rose almost 20 percent in June from the previous month to an estimated 53,600 tonnes in June, data from the Japanese Electric Wire and Cable Makers' Association showed. Still, that was down nearly 25 percent from a year earlier.

The dollar weakened against the euro on Friday after a stronger-than-expected estimate of the German Purchasing Managers' index and improved surveys on the euro zone services and manufacturing sectors boosted the single currency.

Chelyabinsk Zinc Plant, Russia's largest producer of the anti-corrosive metal, said on Friday its output of metals and alloys fell 32.9 percent in the first half of this year to 51,686 tonnes.

Base metals prices are indeed running ahead of fundamentals. We continue to remain bullish on Nickel due to supply concerns and Aluminum too looks good for the day.