Copper edged lower as investors eyed rising warehouse stocks, but the market was on track for a fourth consecutive week of gains with tightening global supplies and economic optimism driving prices higher. China imported 350,000 mt of unwrought copper and copper semis in the month, down 7.9% and setting a low last seen in April 2013. Investors reassessed whether a metal trading near 4-1/2 month highs was likely to extend gains, especially as it is due to move into surplus at some point this year.

Copper inventories in Shanghai Futures Exchange warehouses rose 3.8 percent from last Friday to 84,453 tonnes, their highest in about a month. Overall though, LME stocks are near their lowest in nearly six years. Signs of global economic recovery have gathered pace following last week's strong U. S. jobs data and factory numbers from China that reinforced expectations of a pickup in demand for industrial metals. Thursday's data in China, showed its trade performance improved in June, though it missed market forecasts, suggesting Beijing will have to unveil more stimulus measures to stabilise the economy. China's copper imports fell in June to the lowest since April 2013 as banks reduced lending for metals imports following a probe into alleged fraudulent metals financing at Qingdao port.

The country's initial jobless claims for the week ending in July 5 fell by 11,000 to 304,000, below the estimated 315,000, with the four-week moving average hitting its lowest since August 2007. Technically market is under long liquidation as market has witnessed drop in open interest by -8.86%, now Copper is getting support at 434.3 and below same could see a test of 432.1 level, And resistance is now likely to be seen at 438.1, a move above could see prices testing 439.7.

Trading Ideas:

Copper trading range for the day is 432.1-439.7.

Copper edged lower as investors eyed rising warehouse stocks, but prices gained on weekly basis with tightening global supplies.

China imported 350,000 mt of unwrought copper and copper semis in the month, down 7.9% and setting a low last seen in April 2013.

Copper inventories in Shanghai Futures Exchange warehouses rose 3.8 percent from last Friday to 84,453 tonnes.