Base metals settled higher after remaining subdued during the day on Wednesday, driven mainly by supply concerns and rising expectations of a demand recovery, which triggered buy orders, adding to the advance.

Copper and Zinc were clearly the leaders for the day rising by over 3 percent each on MCX. Nickel saw the highest rise on LME, surging by over 2 percent.

IN FOCUS:

BHP Billiton, which reported a 21 percent decline in copper output in the latest quarter, said restocking of commodities in China may have come to an end, though North American markets may be starting to rebuild inventories.

Chile's Collahuasi copper mine, one of the country's top producers, said on Wednesday it was assessing any potential damage to operations after a power problem with its main conveyor belt.

China's imports of refined copper jumped 12.4 percent from a month earlier to a record for the fifth straight month, though much of the tonnage has not been consumed due to seasonally weak demand. China also imported a record amount of nickel in June, at 41,008 tonnes, up nearly 64 percent from the previous month, official customs data showed.

FUNDAMENTAL OUTLOOK:

Base metals prices are likely to move up further due to hopes of economic recovery and supply concerns in Chile. It seems that markets are trying to discount the housing data which may come positive after a sharp jump in housing starts and building permits in June. Markets are moving ahead of all these data points. The trend may remain up for the day.