NEW YORK (TheStreet) -- Base metals opened in positive territory Monday on the London Metals Exchange on a stronger euro. Although towards the course of the day the metals are expected to trade higher, expected disappointing manufacturing data could pressure prices.
Economic data releases lined up for Monday include ISM Manufacturing for July, which is expected to come in at 54 against the earlier recorded 56.2. Meanwhile, construction spending on a month-on-month basis for June is estimated to be at negative 0.5% vs. negative 0.2% in June.
Copper
Copper for delivery within three months increased almost 1.8% to $7,427 on the LME. Copper inventories maintained by LME increased 0.5% to 413,500 tonnes Friday. Copper faces support at $7,306 and resistance at $7,473.
Mining giant Newmont Mining(NEM) recorded an increase of 42.3% in copper production at its Batu Hijau mine in the first half of the year from a year earlier. The increase was mainly due to higher mineral ore grade at the mine's current operation area. In separate news, Reuters reported that Chinese merchants are seeking to pile up copper stocks through bargain-hunting in the upcoming months after estimates that term premiums to China for shipments will rise.
Major copper producers are trading close to resistance levels. Southern Copper(SCCO), which closed at $31.41 in the previous trading session, has support at $30.78, while resistance lies at $31.78 after which it is seen crossing $32.14. Meanwhile, Freeport-McMoRan Copper & Gold(FCX) closed at $71.54 with support and resistance at $70 and $72.42, respectively. Teck Resources(TCK) closed at $35.25 with support at $34.46 and resistance at $35.65.
Aluminum
Aluminum for delivery within three months increased 0.7% to $2,191 per ton on the LME. Inventories for the metal at the LME declined 5,325 tonnes to 4.39 million tonnes Friday. Aluminum finds support and resistance at $2,158 and $2,194, respectively.
Deutsche Bank(DB) declined to comment on rumors of a soon-to-be-launched physically backed aluminum exchange-traded product by the end of 2010, Reuters reports. Ttalks about an aluminum exchange-traded fund also have been talked about for some time now. . Analysts say that an aluminum ETP would be used mostly by investors looking for short-term exposure to base metals.
Alcoa(AA) closed trading at $11.17, with resistance of $11.34 and support at $10.93. Century Aluminum(CENX) closed at $10.43 with support and resistance at $9.82 and $10.77, respectively. Kaiser Aluminum(KALU) closed at $41 with support at $39.74 and resistance at $41.85.
Nickel
Nickel for delivery within three months accumulated 2% to $21,584 per ton on the LME. Nickel inventories maintained by LME were up 0.6% to settle at 117,498 tonnes Friday. Nickel finds support at $21,167, while resistance lies at $22,033.
Rusal is ready to buy the 25% stake held by Vladimir Potanin's Interros Holding in Norilsk Nickel in order to end the shareholder dispute and boost the market value of the company. However, Interros said that it hasn't yet received any such proposal for a stake buyout.
Zinc
Zinc for delivery within three months edged up 0.5% to $2,035 per ton on the LME. Zinc stockpiles added 625 tonnes on Monday to close at 620,350 tonnes. Support level for the metal is at $1,999 and it faces resistance at $2,042.
Japanese refined zinc exports, with Indonesia and China being key markets, for June dropped 37% year over year to 9,464 tonnes, the sixth consecutive decline. Meanwhile, Taiwan accounted for the largest share of export volume.
Lead
Lead gained 2% to $2,119 per ton on the LME. At the end of the week's trading session on Friday, lead inventories narrowed by 325 tonnes to close at 183,825 tonnes. Lead finds support at $2,075 and resistance at $2,105.
