The base metal segment, being highly dependent on industrial commodity markets, is once again slowly succumbing to bearish market prices amid various global quandaries.

Nickel, tin, zinc, lead, copper, and select brass prices slid at the non-ferrous metal market as demand decreases from essential sources like China and Japan, two of the largest base metal consumers in the world.

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The recovery of the American dollar weighed upon base metals as buyers using other currencies had to purchase commodity items at a higher value. This prompted many companies outside the United States to postpone buying and rely on stockpiled ores instead. Some are forced to buy at an exorbitant price lest their operations be brought to a halt.

On last trading, nickel ends a little bit firmer than last week (its lowest since April 24 stood at a dismal $12,785 a ton) after yielding to a month-long bearish performance on the London Metal Exchange (LME).

Three-month nickel on the LME closed at 0.2 per cent at $13,110 a ton.

Copper also closes flat at $6,220 a tonne after hitting a three-week low of $6,194, while zinc remains down by 1.26 percent at $2,200 a tonne from its lowest in nearly a month at $2,193.

Tin ends up 0.6 per cent at $16,100 a tonne following improved prices upon Indonesia's reinstatement of tighter rules on tin exports.

This reinstatement has also benefitted several base metals-focused companies as this resulted to better stock prices and wider industry attention. Investors have been banking on smaller but promising companies since the ban's implementation.   

Nickel-focused exploration firm Amur Minerals Corporation (OTC:AMMCF)'s projected 90 million tons of nickel ore production is now viewed by industry experts as a substantial factor in contributing to the dwindling nickel supply on the global stage.

On May 19, the base metal segment's attempt at ending bearish prices were hampered by European Central Bank's announcement on the potential "front-loading" of its quantitative easing programme to help the region's economy recover from slump.

"Traders have adjusted their portfolio ahead of Federal Open Market Committee minutes scheduled to be released tonight. In the last six months, the non-farm payroll data in the US have been presented weaker than expected. Then, traders speculate that interest rate hike may not come immediately. Immediately after that the FOMC minutes convey the opposite sounding more hawkish. Therefore, there is a tendency by market participants to stay cautious, which triggered base metals selling on LME," said Gnanasekar Thiagarajan, director of Commtrendz Research.

But it is the low demand for base metal commodities from China that prevents the prices from going up.

According to the National Bureau of Statistics, the weak housing data from China was the catalyst for slow economic recovery. Housing prices has been declining since the second quarter of 2014.

"Any surprise moves to the upside should bolster base metal support but we would expect the markets' reaction to weak data to remain muted because of the higher potential for further stimulus measures," FastMarkets' Tom Moore said.

TagsChina largest base metal consumer in the world, base metal segment, base metal price May 2015, Base Metals in the London Metals Exchange, nickel price, tin price, copper price, lead price, zinc price, biggest consumers of base metals in the world, Amur Minerals Corporation, Kun-Manie mine