Copper settled down by -2.03% at 392.5 as profit-taking continues and global risk-on sentiment pauses. Industrial metals have rallied strongly as the outlook for demand improves, mostly on Chinese industrial public works activity and also optimism that the U.S. election victory by Donald Trump will spur infrastructure development. China's imports of refined copper tumbled by 44.7 per cent year-on-year to 189,812 tonnes in October, a new low in three and a half years, according to China Customs. Despite a year-on-year drop in October, imports totaled 2.99 million tonnes from January to October, up 3.32 per cent year-on-year. Supply in China's domestic copper market has been falling with continuous declines in recent months' imports, and demand, on the other hand, is moderate. SHFE copper inventories dropped to 103,000 tonnes by the end of October due to depletion of domestic goods and falling imports. Low inventories, which approached to a historic low level, also give a strong boost to domestic copper prices. Foreign copper smelters and traders hold back sales to support spot premiums due to nearing annual negotiations for 2017 copper premiums for term shipments. As a result, shipments of refined copper to China have reduced. Zambia Chamber of Mines expects the country's copper production to rise 4% in 2016. Zambia's copper output will increase to 740,000 tonnes this year, it said November 23. Technically market is under long liquidation as market has witnessed drop in open interest by -25.2% to settled at 10534 while prices down -8.15 rupee, now Copper is getting support at 388.5 and below same could see a test of 384.4 level, And resistance is now likely to be seen at 397.3, a move above could see prices testing 402.

Trading Ideas:

Copper trading range for the day is 384.4-402.

Copper prices dropped as profit-taking continues and global risk-on sentiment pauses.

China's imports of refined copper tumbled by 44.7 per cent year-on-year to 189,812 tonnes in October, a new low in three and a half years.

Despite a year-on-year drop in October, imports totaled 2.99 million tonnes from January to October, up 3.32 per cent year-on-year.