The week just gone by was a bear delight as the base metals took a ride down in an express elevator. To large extent the funds are responsible for the present state of the market, as there was massive long liquidation especially in copper. However, the sentiment is not outright bearish as there was consumer buying and physical off-take at current price levels in spite of approaching seasonal slow down. In our last report, we did suggest possible test of supports in copper, aluminium and zinc, but quite frankly speaking on the back of slightly better performance by US equities the base metals complex was broadly expected to hold above the recent lows. In my personal opinion the investors and speculators were disappointed not only by the unimpressive fundamentals but also by three other things or rather lack of them1. Volatility.2. Liquidity3. Closures of any more operations
NSTL
