Copper yesterday settled up 0.17% at 411.55 rose off its lowest level in almost six weeks as concerns over supply tightness increased after the owner of the world's second-largest mine declared force majeure on copper deliveries. Keeping gains in check though, was a deepening economic slowdown in big metals-consuming nations in Asia. Freeport-McMoRan Copper & Gold Inc declared force majeure on deliveries of copper concentrate from its Grasberg mine in Indonesia, where work has been suspended after a May accident that killed 28 people. Freeport said the production halt has curbed output by some 80 million pounds of copper, and it is not clear when Grasberg will be reopened. Weighing on metals prices, export growth throughout Asia has sagged in recent months on slackening demand from the United States, Europe and China, while leading indicators are also pointing to weaker factory activity in the coming months. Heavy stock market and currency falls in Southeast Asia this week have underlined the risks as investors grow nervous that the U. S. Federal Reserve may taper its quantitative easing policy that has fuelled a surge of credit. Trading volumes were low, with China's markets closed for a public holiday this week until Thursday, when investors there will have their first chance to react to the export figures that were released over the weekend. Technically market is now getting support at 408.3 and below same could see a test of 405.1 level, And resistance is now likely to be seen at 414.7, a move above could see prices testing 417.9.

Trading Ideas:

Copper trading range for the day is 410.8-423.

Copper gained as concerns over supply tightness increased after world's second-largest mine declared force majeure on copper deliveries.

Prices were also got support after data showed that industrial production in the euro zone rose for the third consecutive month in April.

Freeport said the production halt has curbed output by some 80 million pounds of copper, and it is not clear when Grasberg will be reopened