Key Macroeconomic Indicators for Base Metal Prices (2017-5-25)

Published: May 25, 2017 09:42
Market will eye last week’s US initial jobless claims, OPEC’s half-year meeting and minutes of the US Fed’s May policy meeting.

SHANGHAI, May 25 (SMM) – Market will eye last week’s US initial jobless claims, OPEC’s half-year meeting and minutes of the US Fed’s May policy meeting.    

US initial jobless claims for last week are expected to be in a normal range, which will have limited impact on US dollar. 

Minutes of the US Fed’s May policy meeting showed US Fed officials agreed to announce details for plans of scaling back balance sheet in the short term and consider it appropriate to begin reducing balance sheet from this year. US Fed officials understand that it is a cautious and wise approach to wait for more evidence to show economic slowdown is just temporary. This means the US Fed wishes to raise interest rate, but is willing to wait for more economic data. This caused the US dollar index to fall.   

The OEPC will hold its 172th half-year meeting today. Members of the OPEC will discuss matters over extending production cuts during the meeting so as to lift oil prices and stabilize market. It is pointed out that oil prices may rise initially and then fall back since positive impact from the meeting has been priced in.  


See SMM price forecast, please click: SMM Price Outlook for Base Metals on SHFE (May 25, 2017)


 

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
Malaysia Seizes Illegal E-Waste and Processing Equipment Worth RM2.57 Million
32 mins ago
Malaysia Seizes Illegal E-Waste and Processing Equipment Worth RM2.57 Million
Read More
Malaysia Seizes Illegal E-Waste and Processing Equipment Worth RM2.57 Million
Malaysia Seizes Illegal E-Waste and Processing Equipment Worth RM2.57 Million
Malaysia’s marine police seized various e-waste materials and processing equipment worth around RM2.57 million at a factory in Selangor. The case highlights continued enforcement pressure on illegal e-waste processing in Malaysia, which could affect regional flows of copper-bearing electronic scrap.
32 mins ago
Winter Storm Disrupts Operations at Central Chile Copper Mines, Northern Operations Unaffected
34 mins ago
Winter Storm Disrupts Operations at Central Chile Copper Mines, Northern Operations Unaffected
Read More
Winter Storm Disrupts Operations at Central Chile Copper Mines, Northern Operations Unaffected
Winter Storm Disrupts Operations at Central Chile Copper Mines, Northern Operations Unaffected
A powerful winter storm has disrupted operations at several copper mines and ports in central Chile, prompting major miners including Codelco, Antofagasta and Anglo American to activate safety protocols in response to heavy rain, snowfall and strong winds.Codelco suspended surface activities at its Andina mine and halted ore shipments from the El Teniente open pit due to snowfall. Anglo American said it is closely monitoring weather conditions at Los Bronces and adjusting operations based on ongoing risk assessments, while Antofagasta has scaled back non-essential activities at its flagship Los Pelambres mine. Vessel movements at several ports in central Chile have also been restricted. Major copper operations in northern Chile remain unaffected. BHP confirmed that all of its Chilean mines continue to operate normally. The storm is forecast to persist through the weekend, with rainfall, strong winds and Andean snowfall expected to ease after Sunday. Market participants continue to monitor the potential impact on global copper concentrate supply, particularly as Chile's copper production has already been constrained in recent years by declining ore grades and operational challenges. The storm has also resulted in three fatalities and caused localized power and water outages, while authorities are expected to release an assessment of damage to the agricultural sector.
34 mins ago
South Korea to Require Mandatory Reporting for Copper Scrap Exports
44 mins ago
South Korea to Require Mandatory Reporting for Copper Scrap Exports
Read More
South Korea to Require Mandatory Reporting for Copper Scrap Exports
South Korea to Require Mandatory Reporting for Copper Scrap Exports
South Korea plans to require mandatory reporting for exports of scrap metals and non-ferrous metals, including copper scrap, to prevent illegal overseas shipments of recyclable resources. Authorities noted past cases where copper scrap was disguised as ordinary scrap metal and smuggled to China, contributing to domestic supply shortages and procurement difficulties.
44 mins ago