Copper settled up 0.52% at 337.75 as weakness in rupee supported prices but prices dropped on weekly basis as poor factory data in top consumer China sparked alarm in global markets and fanned fears of a slide in metals consumption. Activity in China's factory sector shrank at its fastest pace in almost 6-1/2 years in August as both domestic and export demand dwindled. China stocks posted their biggest weekly decline in more than a month. In metals, data showing China's refined copper imports climbing 6 percent in July was not enough to offset concern over deep structural problems in the Chinese economy. Eurozone consumer confidence strengthened for the first time in five months during August, preliminary data from the European Commission revealed. The flash consumer confidence index for the euro area rose to -6.8 from July's -7.1. The global copper market has recorded a surplus of 151,000 tonnes during January to June this year, as mentioned in the latest metals balances report published by the World Bureau of Metal Statistics (WBMS). It must be noted that the worldwide copper market had reported a surplus of 295,000 tonnes for the entire year 2014. The global mine production during the period from January to June this year totaled 9.45 million tonnes. The mine production has grown by 3.8% when matched with the corresponding six-month period in 2014. Meantime, global refined copper output jumped higher by 2.4% over the previous year to 11.25 million tonnes. Technically market is under short covering as market has witnessed drop in open interest by -9.47% to settled at 16034, now Copper is getting support at 332.9 and below same could see a test of 328 level, And resistance is now likely to be seen at 340.7, a move above could see prices testing 343.6.

Trading Ideas:

Copper trading range for the day is 328-343.6.

Copper gains as weakness in rupee supported prices but prices dropped on weekly basis as poor factory data in China sparked alarm in global markets.

Data showed China's refined copper imports climbing 6 percent in July was not enough to offset concern over deep structural problems in the Chinese economy.

Eurozone consumer confidence strengthened for the first time in five months during August, preliminary data from the European Commission revealed.