Industrial metals pared earlier losses after delving sharply lower on Monday, as some short-cover buyers came in the market late in the session, but uncertainty over global economic recovery and risk aversion continued to weigh on industrial metals.

Lead, Nickel and Copper shed over 2 percent each on LME. The downside in metals on MCX was capped as the sharp decline in rupee against the dollar supported the prices.

IN FOCUS:

The value of Chile's copper exports amounted to $2.542 billion in July, the central bank said Monday, rising to its highest level in nearly a year as world copper prices recover. Exports totalled $3.247 billion in July of 2008.

China's fourth-biggest zinc producer Dongling Group is maintaining full production at two zinc lines with combined annual capacity of 150,000 tonnes in Shaanxi province, after shutting a 100,000-tonne lead and zinc plant accused by locals of being a source of lead poisoning.

 A gauge of manufacturing in New York state moved into positive territory in August, suggesting growth in the sector for the first time since April 2008.

FUNDAMENTAL OUTLOOK:

The trend in this complex may remain up during the day. The focus would be on housing reports from the U. S. which are expected to show strong numbers. Copper and aluminium look strong for the day.