Key Macroeconomic Indicators for Base Metal Prices (2016-5-10)

SHANGHAI, May 10 (SMM) –Market will eye China April inflation data and US March wholesale data on Tuesday. 

Crude oil prices tumbled during Monday’s night trading, but base metals fell at a slower pace.  

Business activity expectation index under China’s official manufacturing PMI pointed to marked rise in Apriil. PMI in steel and nonferrous metals industries rose above 50. Producer purchasing index rose for five months in a row. These data suggest that year-on-year decline in China’s PPI will continue narrowing in April.

Pork prices have been rising since April, which is likely to push up China’s CPI in April. But growth in CPI might be mild. 

US wholesales are expected to beat February’s level in March. While US wholesales rose significantly on a monthly basis in February, US retail sales weakened in March, mainly because rising crude oil dented car consumption. As such, even if US wholesales in March beat February’s level, US retail sales are likely to soften in April due to recovery in crude oil prices.   

See SMM price forecast, please click:Base Metals to Trade at Lows, SMM Predicts