Copper settled down -0.37% at 449.75 fell to a one-week low after manufacturing shrank more than estimated in China and some Federal Reserve officials advocated further curbing of U. S. economic stimulus. Data released earlier showed that China's HSBC Flash Purchasing Managers Index fell to 48.3 in February from a final reading of 49.5 in January, remaining below the 50.0 level that separates expansion from contraction for a second month. Copper traders consider shifts in the HSBC PMI an indicator of China's copper demand, as the industrial metal is widely used by the sector. The Asian nation is the world's largest copper consumer, accounting for almost 40% of world consumption last year. Meanwhile, copper traders looked ahead to key U. S. economic data later in the day to gauge the strength of the world's largest economy and second-biggest consumer of the industrial metal. The U. S. is to release the weekly report on initial jobless claims and data on consumer price inflation. The nation is also to release data on manufacturing activity in the Philadelphia region. Minutes of the Federal Reserve's January meeting published Wednesday indicated that the central bank will maintain the current pace of reductions to its stimulus program, as long as the economy continues to improve as expected. Technically market is under long liquidation as market has witnessed drop in open interest by -7.93% to settled at 7973 while prices down -1.65 rupee, now Copper is getting support at 448 and below same could see a test of 446.3 level, And resistance is now likely to be seen at 451.2, a move above could see prices testing 452.7.

Trading Ideas:

Copper trading range for the day is 446.3-452.7.

Copper slipped after a preliminary survey of China's manufacturing sector showed it contracted in February

Helping limit the price fall, however, was LME data showing a further fall in copper stocks held in warehouses registered by the exchange

Copper stocks are falling, physical premiums are holding up pretty well and the market is in deficit.