This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Base Metals Rise on China Manufacturing

Stocks in this article: TCK AA CENX

NEW YORK ( TheStreet) -- Base metals rose early Wednesday, powered by Chinese manufacturing data.

However, focus remains on weakness in the U.S. economic data which could cap the gains for the metals complex.

Major economic data for Wednesday include the ISM Manufacturing index for August which is forecast to drop to 52.8 from 55.5 in July, while the August reading for ISM prices paid is estimated at 55.3 from 57.5 in the prior month. Construction spending on a month-on-month basis for July is likely to come in at negative 0.5% after gaining 0.1% in June.


Copper for three-month delivery fell marginally early Wednesday. However, the metal reversed trend and accumulated gains of 2% to peak to four-month highs of $7,585, cheered by Chinese manufacturing data. LME copper inventories narrowed 1,575 tonnes to 398,525 tonnes Tuesday. The metal faces support and resistance at $7,351 and $7,592, respectively.

Sumitomo Metal Mining, Japan's second-biggest smelter, said that its copper production will fall almost 10% below capacity as copper ore mined from Chile to Indonesia will be in short supply for almost five years. The company believes it is a seller's market for copper concentrates and the scenario won't not change before 2014 when supplies from new projects enter the market.

Southern Copper (SCCO), which closed at $30.23 on Tuesday, has support at $29.70 and resistance at $30.71. Freeport-McMoRan Copper & Gold (FCX) closed at $71.99 with support and resistance at $70.25 and $73.36, respectively. Teck Resources (TCK) closed at $33.38 with support at $32.69 and resistance at $33.94.


Aluminum for three-month delivery gained 0.4% to $2,067 per tonne early Wednesday. LME stockpiles shed 3,125 tonnes to close at 4.44 million tonnes Tuesday. The metal finds support at $2,028 and faces resistance at 2,070.

Chinese exporters of aluminum products are likely to face higher U.S. tariffs on the U.S. Commerce Department's tough stance that Beijing provided unfair subsidies to the industry. The additional tariff would be as high as 138%. The case was brought forward by the United Steelworkers Union and closely held aluminum manufacturers in nine U.S. states. Imports of Chinese aluminum products were valued at $514 million in 2009.

Alcoa (AA) closed trading at $10.22 on Tuesday, finding support and resistance at $10.09 and $10.35, respectively. Century Aluminum (CENX) closed at $10 with support at $9.75 and resistance at $10.16. Kaiser Aluminum (KALU) closed at $36.93 finding support at $36.35 and resistance at $37.40.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs