Base Metal Mixed News: Copper gains 0.7%

Base metals were trading mixed early Friday as China's export-import data came in better than expected.

The metals complex could firm during the day taking cues from China's imports, the launch of new commodities exchange-traded funds, and the Michigan consumer confidence survey.

ETF Securities launched physically backed copper, nickel, and tin exchange-traded products on the London Stock Exchange on Friday, and plans to roll out other funds backed by aluminum, zinc, and lead in 2011. Launch of ETPs will likely boost investment demand for base metals.

Among the U.S. economic data scheduled for release Friday, the Michigan survey is expected to come in modestly higher at 72.5, up from a prior reading of 71.6.

Copper

Copper for three-month delivery rose 0.7% to $9,015 per metric tonne on the London Metal Exchange. China's trade data showed a rise in copper and copper products imports in November to 351,597 tonnes from 273,511 tonnes in October, up 29%.

Copper inventories narrowed 800 tonnes to close at 349,450 tonnes, slumping to new 52-week lows. The metal faces support at $8,849 and resistance at $9,041.

Copper prices could rise 22% over the next 24 months as supply dwindles amid increasing demand from China and North America, according to U.S. Global Investors, Bloomberg reports.

Southern Copper(SCCO_) closed at $45.72 Thursday, finding support at $45.20 and resistance at $46.39. Freeport-McMoRan (FCX_) closed at $110.66, with support and resistance at $109.53 and $111.89, respectively. Teck Resources (TCK_) closed at $55.11, with support at $54.59 and resistance at $55.82.

Aluminum

Aluminum for three-month delivery was unchanged at $2,338 per tone. Inventories declined 3,125 tonnes to close at 4.278 million tonnes. The metal faces support and resistance at $2,295 and $2,380, respectively.

Vedanta Resources, a wanna-be mini-BHP(BHP_) , has sought approval from the government of India for restarting an $8.5 billion alumina expansion project, halted two months ago for violating forestry regulations.

Alcoa(AA_) closed at $14.15 Thursday, finding support and resistance at $14.03 and $14.36, respectively. Century Aluminum(CENX_) closed at $15.32, with support at $15.05 and resistance at $15.47. Kaiser Aluminum(KALU_) closed at $51.69, finding support at $50.35 and resistance at $51.69.

Nickel for three-month delivery gained 0.6% to close at $23,750 per tonne. Inventories declined 396 tonnes to 131,196 tonnes. Nickel has support at $23,268 and resistance at $24,118.

European Nickel suspended work at the Caldag Mine in Turkey, awaiting a forestry permit. Caldag is one of the two important projects with a production target of 20,400 tonnes of nickel and 1,200 tonnes of cobalt per annum. The company's Acojec deposit in the Philippines has a production target of 24, 500 tonnes of nickel and 900 tonnes of cobalt per annum.

Zinc

Zinc for three-month delivery lost 1.0% to $2,277 per tonne. Inventories declined 750 tonnes to 631,425 tonnes. The metal faces support and resistance at $2,251 and $2,309, respectively.

Lead

Lead for three-month delivery was unchanged at $2,405 per tonne during early hours trading. Inventories added 1,800 tonnes to close at 205,250 tonnes. Support and resistance levels for lead are at $2,368 and $2,440, respectively.

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