Views of Ms. Kaynat Chainwala (Research Analyst - Base Metals, Angel Commodities Broking):
"Base metals, which have had a dream run so far this year, are currently going through a rough patch hit by weak economic data from China. The mainland nation witnessed a slowdown in industrial output, fixed asset investment and retail sales in October, hurt by government's stringent crackdown on pollution and debt. Not only this, China's new loans fell more than expected in October to 663.2 billion yuan, their lowest in a year as the shadow banking activities are constantly under the government's scanner.
Since the clampdown is expected to continue over the coming months, we cannot expect a pickup in Chinese activity any time soon and hence base metals pulled back from yearly highs in today's session. So far this week, Copper and Aluminium are down by around 1 percent, while Nickel, Lead and Zinc have plunged sharply by around 4 percent."