This Day On The Street
Continue to site
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

Base Metals Tick Higher as Dollar Slides

NEW YORK ( TheStreet) -- Base metals were ticking higher Wednesday buoyed by the weakening dollar index.

The metals complex is likely to extend its gains through the day, but investors remain cautious ahead of the September import-export index due for release later Wednesday.

ETF Securities announced Monday the launch of a new exchange-traded fund that targets the basket of major industrial metals like aluminum, copper, lead, nickel, tin, and zinc for public trade. Similar to the SPDR Gold Trust ETF (GLD), the new platform will buy physical supplies of base metals. Industry analysts believe that with the new fund copper prices could rise by almost 20% to a record $10,000 per metric tonne on the London Metals Exchange. The prospectus for the new ETF has yet to be published.


Copper for three-month delivery increased 0.8% to touch $8,415 per metric tonne on the LME as demand improved against a weakening dollar. Copper inventories fell 725 tonnes to 371,750 tonnes.

Planned copper mining projects are unlikely to support the estimated demand growth at current rates and would, therefore, lead to a deficit in the mined copper market, Rio Tinto (RTP) revealed to the Wall Street Journal. These mining projects are likely to support only 3% of annual demand growth vs. the estimated 3.81% demand growth during 2010 and 4.49% in 2011.

Southern Copper (SCCO - Get Report), which closed at $38.81 on Tuesday, finds support at $38.13 and faces resistance at $39.18. Freeport-McMoRan Copper & Gold (FCX - Get Report) closed at $95.43 with support and resistance at $93.69 and $96.38, respectively. Teck Resources (TCK - Get Report) closed at $44.23 with support at $43.33 and resistance at $44.80.


Aluminum for three-month delivery inched 0.3% lower to $2,431 per tonne. Inventories shed 3,825 tonnes to 52-week lows of 4.32 million tonnes.

Lack of aluminum producer discipline is continuing to rupture the supply-demand balance and is likely to cap any significant price increases in the upcoming years, Dow Jones reports, citing a Standard Bank report. In 2010, prices are likely to average around $2,219 per metric tonne; in 2011, prices are likely to average $2,430 per metric tonne. Notably, aluminum is trying to break its April 2010 highs, while other metals have already hit five-month highs.

Alcoa (AA - Get Report) closed trading at $13.20 Tuesday, finding support and resistance at $12.92 and $13.36, respectively. Century Aluminum (CENX - Get Report) closed at $14.41 with support at $14.02 and resistance at $14.61. Kaiser Aluminum (KALU - Get Report) closed at $45.77, finding support at $44.21 and resistance at $46.64.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AA $11.17 0.00%
CENX $8.82 0.00%
FCX $14.00 0.00%
GLD $123.65 0.00%
KALU $94.83 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs