Copper settled down -0.7% at 431.4 after data showed that consumer price inflation cooled slightly more than expected in June. China's annual consumer inflation came in slightly below market expectations in June, cooling to 2.3 percent from May's 2.5 percent, leaving scope for more stimulus measures from Beijing as it tries to stabilise the economy. China's government has unveiled a series of modest stimulus measures in recent months to give a lift to economic growth, which dipped to an 18-month low of 7.4 percent in the first quarter, China's slowest annual growth since the third quarter of 2012. Copper prices have rallied more than seven percent since mid June to above the $7,000 a tonne mark, driven by a lack of supply and a cheerier chart picture that has encouraged fresh allocation by funds. China's moves to loosen monetary policy have also fed copper's rally, which may stretch further after Wednesday's relatively benign inflation data handed policy makers scope for fresh action. Chile's Codelco has asked certain buyers of refined copper in China to cancel some term shipments scheduled for delivery in the second half of the year as the firm processes less ores from a new mine. Also the head of Japan's JX Nippon Mining & Metals Corp said the company now expects global refined copper market to see a deficit in 2014, versus earlier projections of a surplus, on strong demand and lower operating rates at smelters. Elsewhere, U.S. small business sentiment weakened in June, pulling back from a six-year high because firms felt less confident the economy would improve in the coming months. Now Copper is getting support at 429.8 and below same could see a test of 428.1 level, And resistance is now likely to be seen at 434.5, a move above could see prices testing 437.5.

Trading Ideas:

Copper trading range for the day is 428.1-437.5.

Copper prices seen under pressure after data showed that consumer price inflation cooled slightly more than expected in June.

Data showed that consumer price inflation in China rose 2.3% in June from a year earlier, slowing from 2.5% in May.

Dwindling copper supplies have underpinned prices.