Key Macroeconomic Indicators for Base Metal Prices (2016-10-18)

Published: Oct 18, 2016 09:25

Save

The US dollar index fell overnight, but base metals remained weak, and should diverge at lows today.

SHANGHAI, Oct. 18 (SMM) – The US dollar index fell overnight, but base metals remained weak, and should diverge at lows today.

US September CPI before seasonally adjusted is expected to improve. Annualized US September PPI was better than expected, with the growth the biggest since December 2014. Core PPI was also in line with market expectations, meaning US inflation is on the rise. US five-year breakeven ratio also expects US consumer goods index will rise at a 1.54% pace, the highest since May.

The pound weakened at one point recently due to the Brexit issue, fueling concerns over UK’s economy. But UK’s inflation continued to strengthen, and is expected to remain strong in September. UK’s retail sales price index should also improve in September, which will bolster the pound.

base metals

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

16 mins ago

Available supply declines; Shanghai spot copper premiums dip before rebounding during the day [SMM SHFE copper spot]

[SMM Shanghai Spot Copper] Looking ahead to tomorrow, SMM recorded social inventory in Shanghai at 58,600 mt, down 2,500 mt WoW from Monday this week, while social inventory in Jiangsu was recorded at 20,800 mt, up 2,300 mt WoW from Monday this week, with overall social inventory edging lower. From a supply-demand fundamental perspective, a large volume of imported copper is expected to arrive later, which may exert phased pressure on spot premiums. Downstream enterprises have low acceptance of the current high premiums, but due to tight supply of mainstream circulating cargoes in Shanghai, SHFE copper spot premiums dipped first and then rose during the day. In addition, according to SMM, some downstream processing enterprises have started stockpiling for the Mid-Autumn Festival and National Day holidays, with purchase willingness edging up slightly. SHFE copper spot premiums are expected to remain at current high levels tomorrow, with a possibility of edging up slightly.

16 mins ago

32 mins ago

Shandong spot copper cathode market

Copper prices trended lower this week, spurring improved downstream demand. Tight spot supply further bolstered sellers’ willingness to hold firm on prices. After contract rollover, Shandong spot copper cathode returned to a premium structure. As of Thursday, the average spot premium/discount was quoted at +430 RMB per tonne.

32 mins ago

36 mins ago

Copper Prices Pull Back, Demand Warms Up; High Premiums Return After Delivery Contract Rollover [SMM Shandong Copper Cathode Spot Weekly Review]

36 mins ago