Key Macroeconomic Indicators for Base Metal Prices (2016-4-13)

SHANGHAI, Apr. 13 (SMM) – Attention is turning to a big bag of economic figures on Wednesday, including China’s March trade data, US March PPI and retail sales data and US last week’s API and EIA crude oil inventories.  

China’s March export growth may improve markedly from February, which however, does not mean a turnaround in China’s export. But market sentiment should get some support from this.   

US March PPI will likely pose little improvement. Crude oil prices registered gains in March and this may help push US inflation. But the annualized US March import price index fell short of forecast, fueling concerns about US March inflation.  

US February retails sales turned out to be upbeat and thus the figure for March should also be positive. Hawkish statements by San Francisco Federal Reserve President John Williams and Richmond Fed Chairman Lake are expected to support US dollar index.

US last week’s API crude oil inventories returned to gains and consequently, US May-delivery oil futures fell back. This will bode ill for base metals prices. Eyes will be also on the monthly oil report from the OPEC and EIA. 

Rising Momentum to Support Base Metal Prices, SMM Says