NEW YORK (TheStreet) -- Base metals opened higher Wednesday on optimism over positive economic data releases scheduled for the day, but the bias remains on the lower side.
The metals complex closed lower Tuesday after U.S. existing-homes sales plunged 27.2% in July, far worse than analysts had forecast.
For Wednesday, data releases include durable goods orders for July, which are expected to grow to 3% vs. a 1% contraction in June. In addition, new-home sales for July are pegged at 330,000, unchanged from the prior month. The House Price Index for June is estimated at 0.1%, compared with 0.5% recorded in the previous month.
Copper
Copper for three-month delivery was up 0.9% to $7,200 per tonne on the London Metal Exchange in the early hours of trading Wednesday, with investors increasing purchases as the seasonally weak consumption period expires. LME copper inventories accumulated 1,625 tonnes to 403,825 tonnes Tuesday. The metal finds support and resistance at $7,135 and $7,212, respectively.
Southern Copper(SCCO), which closed at $28.04 in the previous trading session, has support at $27.66 and faces resistance at $28.59. Freeport-McMoRan Copper & Gold(FCX) closed Tuesday at $67.05. It has support and resistance at $66.26 and $68.10, respectively. Teck Resources(TCK) closed at $31.02 with support at $30.61 and resistance at $31.60.
Aluminum
Aluminum for three-month delivery on the LME traded relatively flat at $2,030 per tone Wednesday. LME aluminum stockpiles shed 3,775 tonnes to close at 4.46 million tonnes Tuesday. Aluminum finds support and resistance at $2,028 and $2,035, respectively.
Aluminum Corp. of China(ACH) is seeking to invest in coal and power producers and is exploring prospects in Southeast Asia to access cheaper power and raw materials. Goldman Sachs commented that with electricity accounting for nearly 35% of smelting cost, the company would remain under margin pressure unless demand rebounds strongly.
Alcoa(AA) closed trading Tuesday at $10.06, finding support and resistance at $9.98 and $10.22, respectively. Century Aluminum(CENX) closed at $9.72 with support and resistance at $9.40 and $10.05, respectively. Kaiser Aluminum(KALU) closed at $35.91, finding support at $35.52 and resistance at $36.33.
Nickel
Nickel for three-month delivery rose 0.5% to $20,700 per tonne on the LME. LME nickel inventories were up 954 tonnes to 117,510 tonnes. The metal has support and resistance at $20,617 and $21,767, respectively.
