Key Macroeconomic Indicators for Base Metal Prices (2016-1-20)

SHANGHAI, Jan. 20 (SMM) –Market will eye US December housing starts and building permits, as well as Germany December PPI. 

Germany’s PPI fell 2.5% YoY in November, with a 7.1% year-on-year decline in energy prices as the main drag. Crude oil prices continuing falling in December. As such, Germany’s PPI is likely to deteriorate further in December.  

US import price index slumped in December, and US PPI fell for 11 months in a row in December. Moreover, US retail sales missed forecast in December. All these negative data, plus falling crude oil prices, mean there is little chance for US CPI to improve in December.

US building permits hit a five-month high in November, suggesting that US housing starts will likely improve in December. US existing home sales grew at their lowest rate in 19 months, partly due to tightened house supply. As such, US building permits look set to hit a new high in December. US December ADP employment report showed construction sector added 24,000 jobs in December.