Overall metal building prices increased last week, after the rate cut by the US Federal Reserve on Tuesday.

The decision to block the world's biggest economy from a housing market slump and financial turbulence took the benchmark federal funds rate down by half a percentage point to 4.75%, its lowest level since May last year.

Copper rallied to a seven-week high, while nickel rose by 5%, to increase near the all-time high. As a result, traders are extremely cautious. Buying would not dwindle because local steel building demand continues to be high.

Copper prices have moved up in the last 10 days by nearly $ 500 per tonne.

Lead, which never traded above $ 1,700 a tonne, stood at an all-time high of $ 3,200. A decision by the Federal Reserve to cut interest rates didn't take the trading community complete by surprise because it was already anticipating a 25 basis point cut in rates.

The recent move, though, did provide an added impetus to the metal building market as an expectation of industrial metal consumption is already strong.

According to insiders, outlook for the rest of the year for base metals remains strong, with limited gains possible.