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
Brass billet industry production will remain under pressure at low levels
13 mins ago
Brass billet industry production will remain under pressure at low levels
Read More
Brass billet industry production will remain under pressure at low levels
Brass billet industry production will remain under pressure at low levels
[SMM Brass Billet Flash] Next week (6.26-7.2), demand in the traditional off-season is still unlikely to see a substantial recovery. Amid copper price fluctuations, end-users remain cautious, and orders are unlikely to rebound significantly. SMM expects that next week, the operating rate of brass billet will edge up 0.29 percentage points WoW to 51.02%, with industry production remaining under pressure at low levels.
13 mins ago
Copper Price Drop Boosts Orders, SMM Sees 2.54% Weekly Production Uptick
15 mins ago
Copper Price Drop Boosts Orders, SMM Sees 2.54% Weekly Production Uptick
Read More
Copper Price Drop Boosts Orders, SMM Sees 2.54% Weekly Production Uptick
Copper Price Drop Boosts Orders, SMM Sees 2.54% Weekly Production Uptick
[SMM Copper Cathode Rod Flash] As copper prices saw a notable pullback at the end of the week, new orders increased significantly, providing steady support for subsequent production. SMM expects the industry operating rate to rise by 2.54 percentage points WoW next week.
15 mins ago
Brass Billet Enterprises' Finished Product Inventory Pressure Remains
16 mins ago
Brass Billet Enterprises' Finished Product Inventory Pressure Remains
Read More
Brass Billet Enterprises' Finished Product Inventory Pressure Remains
Brass Billet Enterprises' Finished Product Inventory Pressure Remains
[SMM Brass Billet Flash] According to SMM, the days of raw material inventories at sampled enterprises slightly rose to 3.84 days. The tight supply of recycled brass raw materials has not notably eased, and no large-scale restocking has taken place at the raw material side. Amid weak demand, the downstream cargo pick-up has been slow, keeping the days of finished product inventories at sampled enterprises at 5.32 days, with inventory pressure persisting.
16 mins ago
Key Macroeconomic Indicators for Base Metal Prices (2017-5-25) - Shanghai Metals Market (SMM)