Industrial metals slid earlier in the session but pared some losses on the back of strong U. S. ISM Manufacturing Index and housing price numbers but it seems most of them were discounted in the prices and showed sharp correction in evening session.

Lead was the only metal which was relatively insulated because of supply concerns where as Nickel corrected the most amongst the entire base metal complex.

Shanghai copper futures fell 4 percent on Wednesday, chasing a similar slide in London metal since the Chinese market closed the previous day on softer equities and persistent worries that prices were over-extended.

The U. S. manufacturing sector grew in August in the first month of expansion in more than a year and a half, according to an industry report released on Tuesday. The Institute for Supply Management said its index of national factory activity rose to 52.9 in August from 48.9 in July, despite of that correction took place indicating the fundamental weakness of base metals.

After a sharp run up it seems that metals are showing some signs of weakness on demand concerns, stronger dollar and production hikes are the major factor which makes up believe that intraday rally in base metals shall be used as selling opportunity. In such case even lead prices should move down.