Industrial metals slid earlier in the session on Wednesday but pared some losses on the back of strong U.S. consumer confidence and home price numbers which triggered some fresh buying in industrial metals.

Lead was the only metal which held its ground on news of possibility of a supply cut following the closure of a number of lead smelters in China. It gained about 2 percent on LME against the losses in other industrial metal.

IN FOCUS:

U.S. consumer confidence index topped economists' forecast and a home price index rose for a second straight month in June, suggesting a recovery in two sectors crucial to a rebound in U.S. economy.

There has been a spate of Lead smelter closures in China's Henan province and checks in other provinces and there could be more lead closures in China, as officials clamp down on polluting smelters in the region.

LME stocks for Aluminium, used in transport and packaging, slipped 3,575 tonnes, but held near record levels above 4.6 million tonnes.

FUNDAMENTAL OUTLOOK:

The momentum in industrial metals may remain up. The focus for the day would be on durable goods and home sales numbers from the U.S. which are expected to come out stronger. We recommend buying in base metals. Lead and copper in particular look good for the day.