LME Copper eased from highs near $7600 per tonne on profit selling as worries over global demand took hold and curbed the upside for the red metal. The gains in US dollar also capped the commodity and an increase in Chinese copper import data was given a cautious welcome by the market participants. Chinese copper imports rose by nearly 6% over the month to 366548 tonnes in July 2012. The imports had hit a 10-month low in June and the July imports are still the second lowest this year. Given the weak demand from Chinese industries, there is a very good possibility that the copper inflows could be linked to financing deals and would not be tied to the local manufacturing. The Chinese factory output growth slowed in July to the weakest level in more than three years. MCX Copper futures continued to face a strong sell off every time prices neared Rs 420 per kg levels.
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