Base metals except for copper erased previous gains on Tuesday on signs that Spain may delay a request for the next bailout. Weaker global equities coupled with higher risk-aversion among investors also created heavy selling pressure on industrial metals.
Aluminum dropped despite slight decline in the LME inventories and positive manufacturing data releases.
Copper was the only gainer, approaching seven-day high on encouraging US PMI release. However, uncertainty over Spain and lack of Asian demand capped the upswing of the red metal.
Nickel slid as oversupply in the market persisted and steel sector remained weak. However, the metal may seek support on potential slump in supply due to Cosmos Mine closure.
Zinc tumbled amid elevated inventory levels at LME-monitored warehouses.