NEW YORK ( TheStreet) -- Copper pared most of its losses after China's National Bureau of Statistics released its growth and inflation data.
Meanwhile, base metals were expected to consolidate with negative bias in Thursday's trading session.
China's economy grew by 10.3% year over year during the second quarter, down from 11.9% during the first quarter. Inflation eased to 2.9% in June compared with 3.1% in May. Analysts reckon that the government measures have paid off signaling a positive course for the economy and base metals.
Events lined up for Thursday include U.S. initial jobless claims, which are expected to come in lower at 445,000 from the prior week's 454,000, continuing claims, expected to come in higher are 4.45 million compared with 4.41 million a week earlier, and industrial production, which is expected to drop to -0.1% in June vs. growth of 1.2% in May.
Copper for delivery within three months traded at $6,684 at the London Metal Exchange before declining 1.8% to $6,603 per metric ton. Copper inventories maintained by LME fell 0.9% to 428,500 tonnes.
refined copper production stood lower by 10% in the second quarter
as compared to the same quarter a year ago. Production was primarily dragged down due to ongoing maintenance activities at its facilities. Besides, the company believes that its refined copper production would be 380,000 tonnes for 2010. The metal is expected to trade sideways with support at $6,616 and resistance at $6,712.
Copper producers are trading very close to their resistance levels.
Freeport-McMoRan Copper & Gold
(FCX - Get Report)
, which closed at $63.66 in the previous trading session, has support at $62.87, while resistance lies at $64.59 followed by $65.51. Meanwhile,
(SCCO - Get Report)
closed at $30.07 with support and resistance levels lying at $29.81 and $30.39, respectively.
Aluminum for delivery within three months remained flat at $2,005 a ton in the early hours of trading Thursday at the LME from the previous day's close of $2,009. LME inventories shed 7,650 tonnes to close at 4.38 million tonnes. The metal is expected to trade sideways with support at $1,994 and resistance at $2,008.