Key Macroeconomic Indicators for Base Metal Prices (2017-8-28)

SHANGHAI, Aug. 28 (SMM) – The market has no important news except for US wholesale inventories in July. The US dollar hit the lowest from August 2 due to Janet Yellen’s statement and sluggish economic data, and may fall further. Both SHFE and LME base metals fell last Friday evening. Copper was resistant to declines. Base metals will diverge in the near term.

SMM Price Outlook for Base Metals on SHFE (Aug. 28, 2017)

US wholesale inventories have risen for 2 months in a row due mainly to lower automobile sales. US July retail sales posted the biggest gains in 7 months because consumers increased purchases for motor vehicles and dispensable spending, meaning economy continued strengthening in early Q3. As such, US wholesale inventories in July are expected to fall.