NEW YORK (TheStreet) -- Base metals were trading marginally lower Friday on the resurging dollar index.
The metals complex has been under pressure from rising inventory levels, weaker Asian equities, and lackluster demand from China. However, positive economic data from the U.S. Friday could cushion prices and cap some of the losses.
Major economic data releases for Friday include a first reading on U.S. third-quarter gross domestic product, which is forecast at 2%, higher than 1.7% recorded in the prior quarter. Personal consumption for the quarter is likely to come in at 2.4%, up from 2.2% in the second quarter. For October, the Chicago Purchasing Managers index is seen at 58, compared to 60.4 in the earlier month, while the Michigan Consumer Sentiment Index is expected at 68, marginally above 67.9 in September.
Copper
Copper for three-month delivery dropped 1% Friday to $8,255 per metric tonnes on the London Metal Exchange on concerns that the recent rally slowed down purchases from China. Inventories shed 575 tonnes to 368,025 tonnes. The red metal faces support and resistance at $8,242 and $8,385, respectively.
Southern Copper(SCCO_) reported a 17% increase in third-quarter net profit to $365.2 million from a year earlier on the back of improving ore grades and production, up 4.1%. The stock closed at $43.08 on Thursday, finding support at $42.57 and resistance at $43.38.
Freeport-McMoRan Copper & Gold(FCX_) closed at $95.49, with support and resistance at $94.73 and $96.88, respectively. Teck Resources (TCK_) closed at $44.41, with support seen at $43.92 and resistance at $44.93.
Aluminum
Aluminum for three-month delivery fell 0.6% to $2,332 per tonne on Friday. Inventory narrowed by 3,600 tonnes to 4.31 million tonnes, hitting 52-week lows. The metal faces support and resistance at $2,318 and $2,360 respectively.
The U.S. administration is proposing to slap anti-dumping duties on Chinese aluminum products, giving a boost to U.S. aluminum producers and the United Steelworkers union, the Wall Street Journal reports. The proposed duties could add an additional 59.31% to the cost of Chinese aluminum extrusions, which are products extracted from aluminum alloys and used in construction.
Alcoa(AA_) closed trading at $12.65 Thursday, finding support and resistance at $12.57 and $12.78, respectively. Century Aluminum(CENX_) closed at $13.07, with support at $12.86 and resistance at $13.33. Kaiser Aluminum(KALU_) closed at $43.27, finding support at $42.81 and resistance at $43.82.
Nickel
Nickel for three-month delivery shed 0.4% to $23,000 per tonne. Inventories were up 1,290 tonnes to close at 128,262 tonnes. The metal faces support and resistance at $22,790 and $23,298, respectively.
Zinc for three-month delivery dipped 1.8% to $2,450 per tone, being the top loser in the metals complex. Zinc inventories accumulated 5,325 tonnes to close at 616,850 tonnes. The metal faces support and resistance at $2,423 and $2,536 respectively.
Global zinc mine production for the January-August period rose 11.3% from a year earlier, driven by increases in China, India, Mexico, and Russia, according to the latest data from the International Lead and Zinc Study Group. During the same period, the global refined zinc market was in surplus of 166,000 tonnes.
Lead
Lead for three-month delivery slumped 1.6% to $2,465 per tonne. Inventories added 1,075 tonnes to close at 199,775 tonnes, touching 52-week highs. The metal faces support and resistance at $2,436 and $2,538, respectively.
Global lead mine production for the January-August period increased 9.3% as compared to the same period a year ago following increases in China, India, Mexico, and Russia, says the International Lead group. For the same period, global refined metal output was up 3.7%.
