Base metals complex remained choppy and ended on a mixed note. Copper prices closed lower on Tuesday as concerns over an uncertain economic outlook and its impact on demand dragged values down, outweighing the fleeting positive impact of upbeat German manufacturing data earlier in the day. However, the losses were capped on MCX owing to the fall in rupee against the dollar.

IN FOCUS:

The parent of Jiangxi Copper is building a 200,000-tonne-per-year lead smelter and a 200,000-tonne-per-year zinc smelter, which would add further to China's surplus of lead and zinc.

Australian miner Western Areas will supply up to 25,000 tonnes of nickel concentrate over two years from its Forrestania project to China's Jinchuan Group, Western Areas said on Wednesday. The contract with China's largest nickel company begins in early 2010 and is expected to end in December 2011, Western Areas said in a statement.

China's imports of unwrought copper and semi-finished copper products are expected to fall from May's record, squeezed by increased prices on the LME, trimming margins for spot inflows. The data is due to be released around July 10.

FUNDAMENTAL OUTLOOK:

Base metals are likely to trade down for the day due to weak demand and strengthening of dollar. We recommend selling Copper and Nickel on rise during the day.