Copper settled up 0.41% at 364.8 as weak China inflation data reinforced views that Beijing will roll out fresh support measures soon for the world's second largest economy. Government data released showed that Chinese producer prices fell by a more-than-expected 5.9% in August, the 42nd straight monthly decline and the worst reading since October 2009. Consumer prices rose 2.0% last month, above expectations for 1.8% and up from 1.6% in July. Non-food inflation remained subdued at 1.1%, unchanged from a month earlier. The soft inflation data added to speculation policymakers in Beijing will have to introduce further stimulus measures to boost growth. Trade data on Tuesday revealed that China's imports shrank far more than expected in August, falling for the 10th straight month. A slowdown in domestic demand indicated a recovery in the broader economy remains fragile and may need further government stimulus. Copper prices have been boosted this week amid news of global production cuts. Swiss-based mining giant Glencore said that it was suspending operations at two copper mines for 18 months in a bid to lower operating costs. The Katanga and Mopani mines are located in the Democratic Republic of the Congo and Zambia, respectively, and their suspensions will remove about 400,000 tonnes of copper from the market. Copper prices have been under heavy selling pressure in recent months as fears of a China-led global economic slowdown spooked traders and rattled sentiment. Technically market is under short covering as market has witnessed drop in open interest by -2.82% to settled at 12918 while prices up 1.5 rupee, now Copper is getting support at 362 and below same could see a test of 359.1 level, And resistance is now likely to be seen at 367.9, a move above could see prices testing 370.9.

Trading Ideas:

Copper trading range for the day is 359.1-370.9.

Copper prices gained as weak China inflation data reinforced views that Beijing will roll out fresh support measures soon for the world's second largest economy.

Government data released showed that Chinese producer prices fell by a more-than-expected 5.9% in August, the 42nd straight monthly decline.

The soft inflation data added to speculation policymakers in Beijing will have to introduce further stimulus measures to boost growth.