Industrial metals posted some gains on Tuesday as the dollar continued its slide against the basket of currencies. Copper futures rallied as much as 3 percent on Tuesday, before worries over high inventories of the base metal led the market to settle off the session's highs.

China's apparent copper demand fell 13.9 percent in August from July, Reuters calculations based on official data showed on Tuesday. Demand fell on a slide in China's copper imports in August which dropped 25 percent versus the month before.

Glencore International, the world's biggest commodity trader, and Credit Suisse are in advanced talks about creating the world's first physically backed aluminium exchange traded fund (ETF), four industry sources across Asia said on Thursday.

Latest data showed on copper stocks in LME warehouses having fallen 50 tonnes to 331,775 tonnes, although they remained near levels not seen since late May. Stocks have now gained about 30 percent since the middle of July.

Macroeconomic data signaled the recession was coming to an end in the U. S. as their single-family home prices rose 0.3 percent in July from June.

We expect industrial metals to continue their upside move on back of expectation of strong manufacturing data from Euro zone. A further slide in dollar against the euro will provide additional support to this complex.