Key Macroeconomic Indicators for Base Metal Prices (2016-2-17)

SHANGHAI, Feb. 17 (SMM) – A big bag of economic figures should be closely watched on Wednesday, including US January’s housing data, inflation and industrial output. US dollar index went up again overnight while crude oil prices fell back, fueling cautious sentiment in market.

US December’s building permits remained above 1.2 million units, indicating that housing starts for January is expected to stay above 1 million units for 10 straight months. And US December’s new home and existing home sales performed well, also showing steady recovery in US housing market. As such, US January’s building permits should not be disappointing. But US NAHB housing market index headed for losses since November 2015, painting a gloomy picture for US construction sector.

Low inflation in US should not achieve real improvement in short term given continuous falling crude prices and slumping import price index for January. US industrial output has registered month-on-month losses for 5 months in a row.