Copper yesterday settled down -0.90% at 412.55 came under heavy selling pressure, as the US dollar strengthened on fresh comments about scaling back the US stimulus programme and following news of an sharp increase in output at the world's biggest copper mine. Base metals markets had been nervous ahead of the testimony of Ben Bernanke, who affirmed the central bank would start later this year to prune its $85-billion-a-month bond-buying programme, which has been supporting financial markets. But he also sounded a dovish tone, leaving open the option of changing that plan if the economic outlook shifted. Copper prices have failed to find momentum above $7,000 a tonne, though they rose to those heights earlier this month after comments favouring looser US monetary policy for longer triggered a cross-commodity rally. Meanwhile BHP Billiton, majority owner of Escondida in Chile, the world's single-largest copper mine, said copper output at the mine rose 28 percent to 1.1 million tonnes in the 2013 fiscal year. The news added to expectations that the copper market will record a surplus in 2013 for the first time in three years. The surplus could be moderated, however, since China's consumption of refined copper is likely to rise in the second half, buoyed by expected government backing for power sector investments to support economic growth. Its economic growth slowed to 7.5 percent in the second quarter, from 7.7 percent in the first quarter, leaving a big dent in copper prices, which are down nearly 13 percent this year. Technically market is getting support at 408.70 and below same could see a test of 404.90 level, And resistance is now likely to be seen at 418.60, a move above could see prices testing 424.70.

Trading Ideas:

Copper trading range for the day is 405-424.8.

Copper dropped after Fed Chairman's testimony and following news of an sharp increase in output at the world's biggest copper mine.

China's consumption of refined copper is likely to rise in the second half, buoyed by expected government backing to support economic growth.

BHP Billiton, majority owner of Escondida in Chile, said copper output at the mine rose 28 percent to 1.1mt in the 2013 fiscal year.