Key Macroeconomic Indicators for Base Metal Prices (2016-4-27)

SHANGHAI, Apr. 27 (SMM) – Eyes will be on US last week’s crude oil inventories and profits for Chinese large industrial enterprises in March on Wednesday.

Profits for Chinese above-scale industrial enterprises may continue improving in March, which is reflected by narrowing declines in March PPI and rebounding commodity prices. Growth in fixed-asset investment and recovery in property market will also help growing profits in large industrial enterprises.

US March pending home sales will likely drop significantly from February. News from US housing market are mixed recently. March new home starts and building permits fell short of forecast and house price gains slow down in March. However, March new and existing home sales beat forecast and this indicates that demand may pick up in US property market. Previously, the demand was curbed by high house prices and low inventories.

US last week’s API crude oil inventories fell unexpectedly and the June-delivery oil contract expanded gains fast and hit the year’s best.  

Base Metal to Get Support from Positive China Data, SMM Says