NEW YORK ( TheStreet) -- Base metals were expected to trade higher Wednesday with positive bias from strong Asian equities, the flattish dollar index and expectations of positive economic data from the eurozone.May's industrial production data from the eurozone is expected to come in higher at 1.2% compared to 0.80% in April. This could help the euro gain strength against the dollar. On Tuesday, the U.S. Commerce Department said the trade balance for May was a deficit of $42.3 billion, wider than market expectations of $39 billion, thereby weakening the dollar and triggering a surprise rally among the base metals. Copper Copper for delivery within three months lost 0.2% to $6,672.50 per metric ton in the early hours of trading on the London Metal Exchange. Inventories maintained by LME declined 1% to close at 432,550 tonnes Tuesday. According to the International Copper Study Group, the refined copper market could show a surplus of about 580,000 tonnes in 2010 as copper supply is expected to outstrip projected weak growth in industrial copper demand. For 2011, a smaller surplus of 240,000 tonnes is expected. Shares of copper producers Freeport-McMoRan Copper & Gold ( FCX), Southern Copper ( SCCO), and Teck Resources ( TCK) closed with gains of 1.91%, 3.85%, and 1.63%, respectively, on Tuesday. Copper faces resistance at $6,703 while support lies at $6,674. Aluminum Aluminum for delivery within three months lost 0.2% to $1,991.75 per metric ton on Wednesday. Stockpiles maintained by LME shed 14,450 tonnes to close at 4.38 million tonnes. Shares of aluminum producers rose across the board. Alcoa ( AA), which released its second-quarter earnings on Monday, has gained 10% during the last five trading sessions. Aluminum faces resistance at $2,004, while support lies at $1,989. Nickel Nickel for delivery within three months lost 0.3% to $19,300 per metric ton in trading on the LME Wednesday. Inventories shed 696 tonnes to close at 119,964 tonnes. The nickel market may swing to a greater deficit than expected this year because of supply disruptions and greater Chinese demand, Sumitomo Metal Mining, Japan's largest producer, told Bloomberg.
Zinc Zinc for delivery within three months fell 1% to $1,845.75 per metric ton in trading on the LME. Inventories maintained by LME shed 400 tonnes to close at 616,125 tonnes. Zinc faces resistance at $1,858, while support lies at $1,831. Lead Lead fell 0.8% to $1,810 per metric ton on the LME. Inventories shed 325 tonnes to close at 188,700 tonnes Tuesday.