Metal prices close flat in line with LME trends

India spot metal prices remained flat in thin trade on Tuesday, tracking trends on the London Metal Exchange, traders said. Base metals closed flat but trends suggest prices will bounce back soon on strong fundamentals, they said.

There is no evidence to suggest large fund houses have started exiting metal trade, which has been on the boil since the last couple of months. Fundamentals suggest prices will go up again, a Mumbai-based trader said.

"We believe today's silent market was just a blip," the trader said.

The nuances of global and Indian metal markets suggest base metals, including copper, will rise further, a Bombay Metal Exchange trader said.

Copper, which is primarily used in wiring and construction activities, will continue to be in short supply.

Also, Chinese demand is pushing copper higher on the LME, the trader from Mumbai said.

China, the largest user of the metal, is importing in bulk as its economy expands and it braces to hold the 2008 Olympics.

In the backdrop of soaring primary metal prices, scrap prices can also go up. More and more small-scale manufacturers are refining scrap for meeting their requirements, the trader said.