Base metals sustained its upside rally against the backdrop of better than expected housing data. The continuous improvement in housing numbers provided a thrust in this complex as investors hopes that demand would finally look up world over.

Lead and Copper gained the most on LME on Monday, surging by 2.0 and 1.4 percent respectively. On MCX, Lead was clearly the winner for the day.

Demand from China and Taiwan and rising world prices have prompted German metals group Cronimet to resume expansion of its molybdenum and copper mine in Armenia, the company said on Monday.

China Nonferrous Metal Mining Corp. (CNMC) plans to start building its Mulyashi copper mine in Zambia in January next year, a senior official said on Monday.

Construction of Papua New Guinea's Ramu nickel mine and processing plant has been stopped by the country's mines inspector due to health and safety concerns, PNG media reported on Tuesday.

Base metals are showing some signs of weakness and we may see some profit taking. But Western world unwrought aluminum stocks fell to 1.24mt at the end of June versus 1.41mt at the end of May which may cap the downside in aluminium.