Industrial metal prices crumbled in the face of a resurgent U. S. dollar and weak U. S. manufacturing data that rekindled economic worries and signaled that demand outside of China remains weak.

Nickel, zinc and lead prices tumbled more than 5 percent on Monday on LME and MCX. LME Zinc future was hit the most, shedding 6.8 percent.

U. S. data showed that a slumping factory sector in New York state shrank at a more severe rate in June than the previous month.

May output data from China showed aluminum production up 14 percent at 999,300 tonnes, though still short of last August's peak of 1.18 million.

Trend could be sideways to down and we may see further downside of 1.5-2 % in this complex. We recommend to book profits on short in copper at Rs. 235/kg. One can buy Nickel at the correction around Rs. 680-685/kg. Aluminium looks very attractive as Japanese aluminium Q3 term premiums were settled at $75/tonne over LME cash price, 30% up from the previous quarter.