Key Macroeconomic Indicators for Base Metal Prices (2015-11-11)

SHANGHAI, Nov. 11 (SMM) – Investors anxiously await another batch of Chinese data, including wholesale data for October, fixed-asset investment and housing data. Markets expect those figures to be mixed.

China’s national fixed-asset investment grew 10.3% from a year earlier during January-September with growth slowing and continuously hitting a new low. Markets expect national fixed-asset investment to slow to 10.2% YoY during January-October. Investment in housing market slowed to 2.6% in the first three quarters and should not pick up during January-October. Investment data are not optimistic, making it difficult for China’s economic growth to improve considerably in Q4. This bodes ill for base metals.

Crude oil prices extended losses for five days in a row, hurt by a surge in API crude oil inventories. However, IEA expects crude oil prices declines will be curbed by reducing investment in crude oil industry.

The US dollar, however, is estimated to hover at highs for the foreseeable future, and will need new stimulus to climb above the high of 100.42 hit in March.

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