FX.co ★ Copper Pairs Early Gains

Copper futures eased to around $6.45 per pound on Thursday, pulling back from a seven-week high after a sharp rally in the previous session, as sluggish domestic demand and softer global prices weighed on market sentiment. The retreat followed a gain of more than 3% the day before, when prices were lifted by tighter supply conditions in China after a crackdown on VAT fraud curtailed copper scrap availability and increased demand for refined copper imports. Those gains, however, proved short-lived as traders locked in profits and worries about slower demand growth resurfaced. In India, copper futures on the MCX also weakened, with July contracts slipping 0.15% and August contracts down 0.29% amid muted buying from domestic consuming industries. On the international front, LME copper fell 0.37%, while Comex copper also edged lower as the market weighed tightening supply conditions against increasingly cautious demand signals.