Base metals apart from nickel slumped on Wednesday as hopes for additional monetary stimulus in China started to vanish. Xinhua News Agency announced that China may slow easing measures as inflationary pressure remains high.
Aluminum extended previous slump on continuous oversupply in the market and stronger US Dollar. However, a slight decline in LME inventories lent support for the light metal.
Copper was depressed by fading hopes that the Fed will soon loosen its monetary policy amid positive headlines from the US.
Nickel was the only gainer after Tuesday's plunge. However, a 34,000-ton surplus in the market in H1 continued to cap the upswing.
Zinc dropped amid supply glut and fading hopes for stimulus in the US and China. At the same time, traders anticipated Italy's bond auction due on Thursday.