Key Macroeconomic Indicators for Base Metal Prices (2017-7-12)

SHANGHAI, Jul. 12 (SMM) – On Wednesday, eyes should be on US’s EIA and API crude oil inventory from the week ending July 7, UK’s June unemployment data and eurozone’s industrial production after seasonal adjustment both on a yearly and monthly basis. US dollar index fell below 96 on Tuesday’s night trading due to Lael Brainard’s dovish comment. Base metals increased across the board, except LME lead and LME tin which underperformed. Base metals will keep diverging on Wednesday.

SMM Price Outlook for Base Metals on SHFE (Jul. 12, 2017)

UK’s 3-month ILO unemployment data will be flat at a 42-year low at 4.6 in May, showing a strong labor market in the country. UK’s 3-month average salary (excluding bonus) will increase 1.9% YoY in May, which will also be higher than April’s level, but will still be lower than inflation growth. However, family stress led by Brexit will release. Eurozone’s industrial production will rise 1% on a monthly basis in May after seasonal adjustment, and will be 3.5% on a yearly basis, which will be higher than April’s level. Eurozone’s economy keeps positive.

US’s API crude oil inventory from the week ending July 7 released on Wednesday morning declined again, down by 8.13 million bbls to 495.6 million bbls, sending COMEX oil up by 3%.