Copper gained as the dollar slipped, but gains were capped by weak investment and industrial production data from top consumer China fuelling worries about demand. China's gross domestic product expanded 6.8 percent in the fourth quarter, outpacing market forecast of 6.7 percent, supported by higher government spending and record bank lending. Expectations that China will continue to spur economic activity this year should boost demand in the world's top copper consumer and sustain the market's upbeat outlook for the metal. U.S. infrastructure spending is not widely expected to be a game-changer for industrial metals demand. China, which accounts for around half of global demand for industrial metals, will remain the main focus this year. Its Lunar New Year holiday starting Jan. 27 is expected to subdue demand and manufacturing activity this month and next as factories close, sometimes for two to three weeks. Japan Electric Wire and Cable Makers' Association announced Japan’s copper wire & cable shipments are expected to slide 2.0% year-on-year in December 2016 to 57,000 tonnes. Chinese imports of unwrought copper and copper products rose 29% month-on-month to 490,000 tonnes in December, the highest level since March 2016. Still, year-on-year, imports were down 8%. China’s imports of unwrought copper and copper-fabricated products totalled 4.95 million tonnes in 2016, up 2.9% on the previous year, according to preliminary customs data. Technically market is under fresh buying as market has witnessed gain in open interest by 0.55% to settled at 17284 while prices up 1.9 rupee, now Copper is getting support at 390.5 and below same could see a test of 386.2 level, And resistance is now likely to be seen at 398.3, a move above could see prices testing 401.8.

Trading Ideas:

Copper trading range for the day is 386.2-401.8.

Copper gained as the dollar slipped, but gains were capped by weak investment and industrial production data from China.

China's gross domestic product expanded 6.8 percent in the fourth quarter, outpacing market forecast of 6.7 percent.

U.S. infrastructure spending is not widely expected to be a game-changer for industrial metals demand.