Copper settled down -0.38% at 468.2 on profit booking after gaining due to tightening supplies and expectations that economic recovery in China will help boost demand. China's economic growth is likely to come in at 7.6 percent this year, according to a cabinet report, just above the government's target of 7.5 percent and slightly below last year's 7.7 percent. Its industrial output is likely to grow by about 9.8 percent in 2013, the Ministry of Industry and Information Technology said. Buying in China is expected to wind down during the Lunar New Year holidays in January. Also supporting copper prices has been a lack of readily available metal due to falling exchange stocks. The latest LME data showed copper stocks in exchange-registered warehouses dropped to their lowest since January at 370,950 tonnes. Still, ample copper concentrate seen flowing into the market next year will eventually feed into more stocks of refined copper, swelling supply and overhanging prices. The potential purchases by the SRB would be equivalent to two-thirds of copper stocks and could would boost prices of the metal which have fallen 8 percent on the LME and Shanghai this year on slowing demand from top consumer China. In China, the PBOC conducted seven-day reverse repos worth RMB 29 billion at the rate of 4.1% on Tuesday, seven-day repo rate was down 335 basis points to 5.55%. Now Copper is getting support at 467.1 and below same could see a test of 465.9 level, And resistance is now likely to be seen at 469.7, a move above could see prices testing 471.1.

Trading Ideas:

Copper trading range for the day is 465.9-471.1.

Copper dropped on profit booking after gaining due to tightening supplies and expectations that economic recovery in China will help boost demand.

State Reserves Bureau (SRB) is working on plans to buy about 300,000 tonnes of copper

Buying in China is expected to wind down during the Lunar New Year holidays in January.