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

Published: May 25, 2017 09:42 (GMT+8)
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
CL Price Spread Narrows, North American Copper Siphoning Effect Weakens
41 mins ago
CL Price Spread Narrows, North American Copper Siphoning Effect Weakens
Read More
CL Price Spread Narrows, North American Copper Siphoning Effect Weakens
CL Price Spread Narrows, North American Copper Siphoning Effect Weakens
[SMM Global Copper Cathode Market] Since late August, the COMEX-LME (CL) copper price spread has continued to narrow. As of press time, the price spread between the COMEX copper 2610 contract and the LME 3M copper contract has inverted to -$46.94/mt, while the spread between the 2611 contract and the LME 3M copper contract has also narrowed to $38.99/mt. According to SMM, as the CL price spread contracts, the siphoning effect of the US on global copper cathode supply has weakened.
41 mins ago
SHFE/LME price ratio and structure improve, buyers and sellers diverge [SMM Yangshan spot copper]
43 mins ago
SHFE/LME price ratio and structure improve, buyers and sellers diverge [SMM Yangshan spot copper]
Read More
SHFE/LME price ratio and structure improve, buyers and sellers diverge [SMM Yangshan spot copper]
SHFE/LME price ratio and structure improve, buyers and sellers diverge [SMM Yangshan spot copper]
43 mins ago
The month-over-month backwardation widened further, coupled with weakening demand ahead of the holiday, and spot premiums are expected to continue pulling back [SMM Shanghai spot copper]
58 mins ago
The month-over-month backwardation widened further, coupled with weakening demand ahead of the holiday, and spot premiums are expected to continue pulling back [SMM Shanghai spot copper]
Read More
The month-over-month backwardation widened further, coupled with weakening demand ahead of the holiday, and spot premiums are expected to continue pulling back [SMM Shanghai spot copper]
The month-over-month backwardation widened further, coupled with weakening demand ahead of the holiday, and spot premiums are expected to continue pulling back [SMM Shanghai spot copper]
[SMM Shanghai Spot Copper] Looking ahead to tomorrow, suppliers continuously lowered their quotes during the day to facilitate transactions, and the market transaction center shifted further downward. In early trading, the price spread between SHFE copper 2610 and 2611 contracts consolidated around a backwardation of 600 yuan/mt before rapidly widening, once expanding to around 700-710 yuan/mt during the session. Near-month contracts strengthened further relative to deferred-month contracts, and the backwardation structure between adjacent months deepened notably, exerting some pressure on spot purchases. On the demand side, most downstream processing enterprises have largely completed their pre-holiday stockpiling, leaving limited new purchasing demand. Trading activity in the market is expected to decline further tomorrow. As pre-holiday demand gradually weakens, suppliers face increasing shipment pressure, and spot premiums in Shanghai are expected to continue edging down tomorrow.
58 mins ago