SHANGHAI, May 20 (SMM) – Base metals will remain weak on Friday with eyes on Germany’s annualized April PPI, US April existing-home sales and G7 financial meeting.
Germany’s annualized PPI for April may not pick up. In spite of continuous gains in crude oil prices in April, the annualized CPI in euro zone did not improve in April. As such, Germany’s inflation will likely stay soft in April.
US April existing home sales should be upbeat as US April housing starts and building permits both improve over March’s levels. Moreover, wage growth quickened, fueling expectation for recovery in US housing market.
Speeches about competitive depreciation in currencies are expected at the G7 financial meeting due for today.
Operation restart at China’s large steel producers worsened global steel overcapacity and markets expect G7 to impose pressure on China’s steel producers. The US has raised the import duty on Chinese cold-rolled steel to 522%. This weighed on base metals prices.