Key Macroeconomic Indicators for Base Metal Prices (2016-4-18)

SHANGHAI, Apr. 18 (SMM) – Base metals are expected to fall today, dragged down by crude oil prices.

No agreement was reached at the Doha meeting on crude oil freeze plan. The next meeting on oil issue will be held in June. Crude oil prices plunged 6% after opening during Asian trading hours, and are expected to fall initially before rising this week, weigh down base metals.

Home prices at 70 Chinese cities in March will be released today. Investment in the property market picked up YoY. Despite upward momentum of ferrous metals, durable goods inventories remain high. This should constrain price gains in nonferrous metals.

Draft agreement released previously said daily average crude oil output would be frozen below January’s level until October 1. And crude oil producing countries would meet in October to assess execution of the agreement.

A large number of longs retreated from crude oil market last week’s end, but gave limited effect on base metals.

See SMM price forecast, please click:Tumbling Oil to Weigh Down Base Metal Prices, SMM Says