By Nirmal Bang

MARKET ROUNDUP

Industrial Metals futures ended Friday at their highest levels since mid-May, tracking improving global economic sentiment as European bank stress tests results showed most banks had enough capital to withstand sovereign debt-related turmoil.

IN FOCUS

- South Africa's logistics group Transnet has shut down its iron ore rail line after a train carrying ore was derailed, the company said on Saturday, threatening to slow exports of the raw material.

- Demand for North American semifabricated aluminum mill products increased by 4.6 percent in June over May, and shot up 16.6 percent from June 2009, aluminum industry data showed on Friday.

- North American shipments of replacement automotive batteries dipped 0.47 percent in May from April, but were up 7.90 percent from year-ago levels, a U.S. industry group said on Friday.

- Russia's Finance Ministry said on Friday it had no plans to increase taxes on the steel industry despite such calls from other sectors, including the country's pipeline monopoly.

- China will aim to keep total annual output of 10 nonferrous metals below 41 million tonnes by 2015, the China Securities Journal said on Monday. The metals include copper, aluminum, lead, zinc, nickel, tin, antimony, magnesium, titanium sponge, and hydrargyrum, the report quoted Shang Fushan, deputy head of the China Nonferrous Metals Industry Association, as saying at an industry conference.

FUNDAMENTAL OUTLOOK

Industrial metals are trading side-ways on LME. We have New Home Sales data to be released from US in the evening session today, expectation for same are higher from previous numbers. We expect industrial metals to trade up today on the back of renewed confidence in the global economic recovery. Copper and Aluminium in particular look strong today. Buying at dips is recommended.