NEW YORK (TheStreet) -- Base metals were lower Wednesday on a strong dollar and concerns regarding China's property market curbs.
People's Daily, a Chinese newspaper, quoted an official saying that the property developers in the country are facing increasing cash flow pressure.
Base metals could move lower throughout the day weighed down by expected dismal U.S. industrial production figures and a weaker yen pushing the dollar index higher.
However, with the eurozone CPI coming in at a positive 0.2% in August, as compared to negative 0.3% in July, base metals may shift course capping the price declines.
Economic data releases Wednesday include the import price index for August, which is likely to track earlier levels of 0.2%. The Empire State Manufacturing index for September is forecast at 8.0, compared with 7.1 in July, and August industrial production is likely to ease to 0.2%, lower than the earlier month's 1%. August capacity utilization is seen edging up to 75% from 74.8% earlier.
Copper
Copper for three-month delivery dipped almost 0.9% to $7,587 per tonne on the London Metal Exchange (LME) Wednesday, as the dollar index strengthened and China's property market curbs resurfaced. Inventories increased marginally to 390,525 tonnes from 390,450 tonnes. The metal finds support and resistance at $7,545 and $7,693, respectively.
Southern Copper(SCCO), which closed at $33.02 on Tuesday, finds support at $32.67 and faces resistance at $33.33. Freeport-McMoRan Copper & Gold(FCX) closed at $81.44 with support and resistance at $80.59 and $82.39, respectively. Teck Resources(TCK) closed at $39.53 with support at $38.88 and resistance at $40.08.
Aluminum
Aluminum for three-month delivery declined 0.9% to $2,142 per tonne. LME stockpiles accumulated 950 tonnes to close at 4.40 million tonnes. The metal finds support at $2,123 and faces resistance at $2,175.
Oleg Deripaska, chief executive United Company Rusal, expects aluminum prices to gain 12% to $2,400 per tonne by the end of 2010 on strong Asian demand, Reuters reports.
Alcoa(AA) closed trading at $11.49 Tuesday, finding support and resistance at $11.35 and $11.61, respectively. Century Aluminum(CENX) closed at $11.34 with support at $11.19 and resistance at $11.52. Kaiser Aluminum(KALU) closed at $41.92 finding support at $41.32 and resistance at $42.33.
Nickel
Nickel for three-month delivery dipped 1% to $23,115 per tonne on the LME. Inventories gained 216 tonnes to close at 119,034 tonnes. The metal finds support and resistance at $22,845 and $23,441, respectively.
