Industrial metals slid on Monday after a sharp plunge in Chinese equity markets raised doubts about the strength of global economic recovery but pared some losses later in the session.

Chile said on Monday that copper prices could average $2.13 per lb between 2010 and 2019, based on estimates from a panel of experts used to help draft next year's national budget bill.

A report that Chinese state-owned companies will be allowed to walk away from loss-making commodity derivative trades struck a nerve among metals traders.

Mexican copper output fell 0.2 percent to 19,522 tonnes in June compared with the same month a year earlier, the government said on Monday.

African Eagle Limited will seek an equity partner to finance an up to $450 million nickel project in Tanzania and could sell some copper and gold projects to raise funds, the company said on Monday.

The momentum in industrial metals may remain up during the day. The focus for the day would be on manufacturing and auto sales numbers from the U. S. and the euro zone. However, the upside may be capped on the back of the news of tightening in lending by Chinese banks.