Key Macroeconomic Indicators for Base Metal Prices (2016-4-5)

SHANGHAI, Apr. 5 (SMM) – Base metals are expected to diverge today.

The US dollar index remained weak despite upbeat non-farm employment figures in the US. The index will unlikely gain ground in the near term. But falling crude oil prices counteracted any positive effects on base metals from the US dollar index.

US non-farm employment was 215,000 in March, topping market expectations, with salaries also rebounding.

OPEC and non-OPEC countries will meet April 17 to discuss oil output freeze issue. This had driven up international crude oil prices to above USD 40/bbl. But Saudi Arab said only if Iran participates in output freeze plan, it will freeze its output, depressing the market.

Ferrous metals prices now exert on significant influence on base metals. China’s has no solid macroeconomic news this week.

Ferrous metals prices and metals which are targeted for capacity elimination should remain strong. Other metals will fall, though.

See SMM price forecast, please click:Diverging Trends to Intensify among Base Metals, SMM Says