Key Macroeconomic Indicators for Base Metal Prices (2016-6-8)

SHANGHAI, Jun. 8 (SMM) – With some investors exiting from market for China’s Dragon Boat Festival from June 9-11, base metals are expected to see diverging trade on Wednesday. China’s financial market will be closed this evening.

Eyes will be on US crude oil inventories and China’s trade data for May. US JOLTs job  openings for April jumped to 5.76 million and this shows continuous recovery in US labor market.

Of sub-indexes that constitute China’s official manufacturing PMI, new order sub-index fell for second month in May and new export order sun-index also dropped to around 50. This indicates soft demand both at home and abroad. As for sub-indexes that constitute Caixin China manufacturing PMI, new order sub-indexes slid below 50 in May and new export business volume sub-index also posted declines. As such, China’s trade data may be disappointing.

US last week’s API crude oil inventories decreased 3.57 million bbl, on par with forecast and versus a rise of 2.35 million bbl in the prior week. The inventories in Cushing slipped 1.31 million bbl. But US crude oil futures for July delivery went lower due to unexpected rise in petrol inventories. 

Base Metals to Stay Weak as Investors Withdraw before Holiday, SMM Says