NEW YORK (TheStreet) -- Base metals were trading relatively flat to higher early Wednesday.
The expectation the Federal Reserve will issue further stimulus for the U.S. economy may weaken the dollar and buoy commodities demand. Positive U.S. economic data could cushion price increases.
U.S. September factory orders are seen Wednesday at a positive 1.2%, compared with a negative 0.5% recorded in August. The ISM non-manufacturing composite for October is estimated at 53.5, marginally above 53.2 recorded in September.
Copper
Copper for three-month delivery dipped 0.5% to $8,395 per metric tonne on the London Metal Exchange with the dollar index remaining relatively unchanged. Inventories shed 625 tonnes to 366,950 tonnes, hitting 52-week lows. The red metal faces support at $8,314 and resistance at $8,474.
China's copper consumption during 2010 is estimated higher due to strong demand from the auto and electronics industries, Bloomberg reports. Refined copper consumption is likely to grow by 11.5% to 6.8 million metric tonnes, higher than Antaike's latest forecast of 10.7% and an earlier forecast of 8%.
Southern Copper(SCCO) closed at $42.83 on Tuesday, finding support at $42.56 and resistance at $43.22. Freeport-McMoRan Copper & Gold(FCX) closed at $97.66, with support and resistance at $96.76 and $98.40, respectively. Teck Resources(TCK) closed at $45.33, with support at $45.05 and resistance at $45.62.
Aluminum
Aluminum for three-month remained relatively flat Wednesday at $2,428 per tonne. Inventories narrowed 5,400 tonnes to 4.29 million tonnes, losing for the fifth consecutive day and touching 52-week lows. The metal faces support at $2,387 and resistance at $2,457.
Alcoa(AA) closed trading at $13.24 Tuesday, finding support and resistance at $13.14 and $13.30, respectively. Century Aluminum(CENX) closed at $13.65, with support at $13.50 and resistance at $13.74. Kaiser Aluminum(KALU) closed at $44.96, finding support at $44.41 and resistance at $45.36.
Nickel
Nickel for three-month delivery inched up 0.2% to $23,520 per tonne. Inventories declined 342 tonnes to close at 128,802 tonnes. The metal faces support at $23,267 and resistance at $23,682.
Zinc
Zinc for three-month delivery was up 0.7% to $2,470 per tonne. Inventories added 4,225 tonnes to close at 632,225 tonnes, touching 52-week highs. The metal faces support at $2,429 and resistance at $2,474.
China, the world's largest zinc producer, is planning to sell 50,000 metric tonnes of the metal from state reserves in order to boost domestic supplies as the energy-saving drive curbs output and boosts prices, Bloomberg reports. For November, the country's zinc production is expected between 30,000 and 40,000 tons due to limited power supply.
