Base Metals Mixed; Copper Gains 0.7%

NEW YORK （Karvy） -- 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.