Base metals continued their decline on Wednesday on the back of weak durable goods order report from the U. S. and the mounting demand concerns especially from China. The rise in dollar against the basket of currencies added further pressure on the prices.

Zinc and Copper lost the most on LME, falling by 2.37 and 2.08 percent respectively. On MCX, Nickel witnessed the sharpest decline, falling by 2.42 percent.

Chile's state copper think tank, Cochilco, said on Wednesday it raised its 2009 average copper price outlook to $1.95 per pound from $1.75, as it expects the sluggish world economy to pick up later this year.

China's major copper smelters have not concluded spot copper concentrate imports this month as they hold out for higher treatment and refining charges (TC/RCs) which have fallen to $20 and 2 cents, an official at the China Smelters Purchase Team (CSPT) said on Wednesday.

China's largest nickel producer Jinchuan Group Ltd. will take over Zambia's sole nickel mine Munali next month after the operations were suspended in March due to low nickel prices, the mines minister said on Wednesday.

Strategy should be selling on rise as China’s top state owned banks may curb excessive lending, hindering the growth and that’s slightly negative for base metals. We don’t recommend going short in Aluminium, which looks relatively strong base.