Copper on MCX settled down -1.21% at 376.05 after a U.S. air strike on Syria prompted investors to move out of riskier assets and the biggest sell-off in Chinese steel futures in two months spilled over into industrial metals. Base metals came under pressure after the most-active rebar on the Shanghai Futures Exchange closed down 4.9 percent at 3,038 yuan ($440) a tonne, its sharpest fall since Feb. 3, on concerns of rising steel supply and tepid demand.
The discount of LME cash copper to the three-month contract closed at $31.25 a tonne, close to the biggest in four years, indicating adequate supply of refined metal in the market. German industrial output surged in February and the trade balance swelled in what the Economy Ministry said was an "extraordinarily" robust start to the year.
China's foreign exchange reserves rose slightly in March, though by a bit less than the market expected, as capital control measures and a pause in the dollar's rally helped contain capital outflows. Reserves rose $3.96 billion during March to total $3.009 trillion, compared with an increase of $6.92 billion in February, when reserves rebounded to $3.005 trillion, rising for the first time in eight months. China has tightened rules on moving capital outside the country in recent months as it seeks to support the yuan currency and stem a slide in its foreign exchange reserves. It burned through nearly $320 billion of reserves last year but the yuan still fell about 6.5 percent against the dollar, its biggest annual drop since 1994.
Technically market is under fresh selling as market has witnessed gain in open interest by 14.11% to settled at 15395, now Copper is getting support at 371.4 and below same could see a test of 366.6 level, And resistance is now likely to be seen at 380.2, a move above could see prices testing 384.2.