Copper on MCX settled up 0.33% at 395.30 as support after dispute affecting production at the world's second-biggest copper mine worsened. Supply issues dominated the base metals market, with nickel also gaining ground to reach a two-month high as the market tracked the latest plans by the Philippines to close mines on environmental grounds. In copper, U.S. mining giant Freeport-McMoRan Inc said on Monday that it could take the Indonesian government to arbitration and seek damages over a contractual dispute that has halted operations at its huge Grasberg mine.
Three-month copper on the London Metal Exchange closed 1.9 percent higher at $6,070 a tonne, recovering from losses on Friday. Further tightening supplies is a strike at Chile's Escondida copper mine, the world's biggest, which has extended into a second week. Both Grasberg and Escondida declared force majeure last week. Representatives of Escondida, controlled by BHP Billiton , plan to attend talks with striking workers on Monday as long as the union does not interfere with a shift change for non-union employees.
In the week ahead, global financial markets will focus on U.S. President Donald Trump's address to Congress on Tuesday for further details on his promises of tax reform, deregulation and infrastructure spending. This week is also peppered with a handful of Fed appearances, most importantly Fed Chair Janet Yellen on Friday.
Investors will also be watching a revised reading of fourth-quarter U.S. growth to gauge the strength of the economy. Private sector survey data from the UK and euro zone inflation data will also be in focus. Technically market is getting support at 392 and below same could see a test of 388.6 level, and resistance is now likely to be seen at 397.3, a move above could see prices testing 399.2.