NEW YORK (TheStreet) -- Base metals opened marginally higher Monday and could recover from Friday's losses as economic data across the U.S. and Europe is expected to be moderate.
Gains could be limited, however, as the dollar continues to trade higher and economic weakness persists.
Major economic data releases lined up for Monday include the Chicago Fed Nat Activity Index for July, which is estimated to come in at a negative 0.1 vs. negative 0.63 recorded in June.
BHP Billiton(BHP) and Rio Tinto(RTP) gained in the early hours of trading Monday on optimism that the mining tax on iron ore and coal in Australia could be scrapped.
Copper
Copper for three-month delivery rose 0.6% to $7,295 on the London Metal Exchange. The drawdown in LME copper was 1,800 tonnes to 401,725 tonnes Friday. The metal faces support and resistance at $7,252 and $7,313, respectively.
For the seventh consecutive month in July, copper wire and cable shipments from Japan escalated 2.9% to 59,700 metric tons as the country's export economy grew. Copper cable shipments for the country's auto sector were up 11% year over year in July, while the electronics industry reported a 24% increase.
Southern Copper(SCCO), which closed at $29.40 in the previous trading session, finds support at $29.05 and resistance at $29.60. Freeport-McMoRan Copper & Gold(FCX) closed at $71.37 with support and resistance at $70.50 and $71.99, respectively. Teck Resources(TCK) closed at $32.75 with support at $32.47 and resistance at $32.97.
Aluminum
Aluminum for delivery within three months was up 0.8% to $2,057 per ton on the LME. LME inventories grew 150 tonnes to close at 4.46 million tonnes Friday. Aluminum finds support and resistance at $2,049 and $2,062, respectively.
Sumitomo, Japan's third largest trading house, expects global aluminum production to outstrip demand in 2010 due to China's planned expansion. Aluminum output in China is likely to soar by 29% from the 2009 levels to 17.4 million tons, which is 5.5% higher than the January forecast. In addition, expanding demand could turn China into a net aluminum importer by 2012.
Alcoa(AA) closed trading Friday at $10.57 finding support and resistance at $10.48 and $10.62, respectively. Century Aluminum(CENX) closed at $10.13 with support and resistance at $9.94 and $10.22, respectively. Kaiser Aluminum(KALU) closed at $36.90 with support at $36.15 and resistance at $37.30.
Nickel
Nickel for delivery within three months gained 0.7% to $21,700 per ton on the LME. The buildup in LME inventories was 720 tonnes to 116,388 tonnes Friday. The metal faces support and resistance at $21,600 and $21,750, respectively.
