closed lower on Thursday, as the dollar strengthened against the basket of currencies and grim U.S. and European unemployment data highlighted concerns that global economic recovery and improvement in industrial metals demand could be a long way off. Nickel was the only metal that held its levels and ended the day on a positive note.

IN FOCUS:
The European Central Bank's held interest rates at 1 percent and its chief warned that weak economic activity would hamper growth and gradual recovery would only emerge by mid-2010.

The Philippines' Semirara Mining Corp said on Thursday its 50-percent-held unit has suspended operations at a nickel project north of the capital due to low prices of the metal. The nickel mine in Sta. Cruz town in Zambales province began commercial operations last year and is expected to produce 1 million tonnes of direct shipping ore annually, according to the Mines and Geosciences Bureau.

The International Nickel Study Group expects the global nickel market to post a surplus of 80,000 tonnes this year as falling demand continues to outpace cutbacks by producers.

FUNDAMENTAL OUTLOOK:

All base metals except Nickel went down last day against the backdrop of demand concerns. We recommend selling base metals on rallies. Nickel is moving up due to improvement in demand outlook from stainless steel sector.