Metal space under pressure; extended declines seen in aluminium, copper and iron ore

Oil prices rose 1 percent in early trade on Tuesday, clawing back more of last week's losses as the focus returned to tight supply of crude and fuel products versus concerns about a recession hitting demand down the track.

The metal space, however, remains worrying as extended declines are seen in the space. Aluminium prices are trading at a 1-year low as the Chinese May aluminium imports have declined by nearly 16 percent.

Copper prices, in the US, declined to 15-month lows and prices fall below $4 a pound.

Workers of Codelco in Chile are preparing for a national strike - which could lead to some support to the prices but otherwise, overall the metal space is under pressure.

The iron ore prices declined 11 percent yesterday in Dalian and 8 percent down in Singapore as well.

The Chinese steel consumption has continued to decline and the steel prices in China are at a 16-month low. So the pain in metals continues.