Copper settled -0.54% down at 436.30 were lower in subdued trade on Monday, as market players looked ahead to a meeting of euro zone finance ministers later in the day. Ongoing worries over the US debt ceiling debate also remained in focus. Trade was remain subdued on Monday, as floor trading on the Comex was to remain closed for the Martin Luther King Jr. holiday. Copper traders continued to monitor political developments in the US, amid growing uncertainty over how the country will tackle the upcoming USD16.4 trillion debt ceiling debate. House Republicans said Friday they would hold a vote on January 23 to grant a three-month debt limit extension to give Congress more time to pass a federal budget. Failing to raise the debt ceiling by the end of February could lead to a first-ever US default that could roil financial markets and weigh on demand for oil. Meanwhile, investors were jittery as the euro group of euro zone finance ministers was to hold talks to discuss how the euro zone’s permanent bailout fund, the European Stability Mechanism can provide direct aid to banks. On Friday Jean-Claude Juncker, the outgoing chairman of the eurogroup endorsed Dutch Finance Minister as a "good" candidate to take over his job. The appointment will be closely watched as the head of the eurogroup plays a vital role forming a policy response to the debt crisis. For today's session market is looking to take support at 435.3, a break below could see a test of 434.2 and where as resistance is now likely to be seen at 438.2, a move above could see prices testing 440.

Trading Ideas:

Copper trading range for the day is 434.2-440.

Copper ended lower due to weak physical demand from China and macro and data fronts both remained comparatively calm.

Data showed imports of refined copper by China, dropped 4.7 percent in December from November.

The proportion of cancelled warrants to total LME copper stocks continued slipping the same day.