Copper retreated to around $6.45 per pound after a sharp rally, as tighter Chinese scrap supply supported refined imports but weak domestic demand and softer global prices weighed on sentiment.
Copper futures eased to around $6.45 per pound on Thursday after briefly reaching a seven-week high in the previous session, as traders took profits and weaker demand signals tempered a supply-driven rally. The earlier advance of more than 3% had been fueled by tighter supply conditions in China after a crackdown on VAT fraud reduced copper scrap availability and increased demand for refined copper imports. In India, MCX copper futures moved lower, with July contracts down 0.15% and August contracts down 0.29% amid subdued demand from domestic consuming industries. Globally, LME copper slipped 0.37% and Comex copper also declined as the market weighed tighter supply conditions against concerns over slower demand growth.