The main reason for the fall is recent bearish data of the US economic growth. Housing start figure shown a fell of more than 10 per cent in April. Summer which is a slack season for the metals it has also made sentiment bearish. It was a classic snowball effect. Copper and aluminum lost 230 or 130 From the peak of spring rally. Nickel had lost 900 or 16.5 per cent. The metal sensitive numbers has spooked the investment. The market could well overshoot on the downside, presenting a buying opportunity for consumers who had missed the bus earlier.

As far as market is concerned, LME seems in thebottoming out phase of a four year long markets. Normally markets used to test the lows before upward marches or, so says the Technicians. Whether they prove correct or not is a matter of guess.