Key Macroeconomic Indicators for Base Metal Prices (2017-4-17)

SHANGHAI, Apr. 17 (SMM) – LME market keeps closing on Monday. Eyes should be on China’s GDP, consumption, investment and industrial added value in Q1 2017. Base metals on SHFE market were volatile last Friday and will remain divergent on Monday.

SMM Price Outlook for Base Metals on SHFE (Apr. 17, 2017)

China’s GDP is expected to be positive in the first quarter of 2017. According to medium report, more than a half of economists predict China’s GDP to reach 6.8%. However, there is a possibility for the data to drop as a series of economic data grew significantly in March 2016, despite of expectation over higher industrial added value in March. Fixed-asset investment will stay at highs or drop slightly in March due largely to rapid growth of infrastructure construction investment.

Zhu Baoliang, Chief Economist of the State Information Center of China (SIC) and Director of the Department of Economic Forecasting of SIC, pointed out that effects from strengthening fiscal policy, prudent and loose monetary policy and supply-side structural reform show. But economic structure remains unbalanced and government should avoid and dispel financial risk and restrain excessive growth in financial industry.