Key Macroeconomic Indicators for Base Metal Prices (2016-8-29)

SHANGHAI, Aug. 29 (SMM) –Market will eye US Conference Board’s consumer confidence index for August today. 

The US dollar index fell to near 92 yesterday, due to remarks by ECB president and worries over tropical storm Harvey, close to the low of 91.9 touched in May 2016. ADP employment data on Wednesday and non-farm payrolls on Friday will be main influential factors for US dollar.    

Recent US economic data are poor. Trump’s remarks had impact on market. US Fed head Yellen did not send positive signal during global central banks’ meeting. These cast a shadow on US economy, thus affecting consumer confidence. Conference Board’s consumer confidence index has been rising since May, but may fall slightly in August.    

US petroleum output will fall 800,000 barrels per day in September following tropical storm Harvey in Texas, energy security analysis firm predicted. Flood may disruption petroleum output for more than one month. But, petroleum output will recover to 9.5 million barrels per day before November. So far, flood triggered by Harvey has forced many refineries in Mexico Gulf to close, affecting crude oil demand. As such, US crude oil futures contract for October delivery fell over 2% yesterday.    

See SMM price forecast, please click: SMM Price Outlook for Base Metals on SHFE (Aug. 29, 2017)