Industrial and Base Metals Fundamental Analysis, May 19, 2015 – Forecast – Copper, Palladium & More

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Published: May 18, 2015, 11:00 GMT+00:00

Analysis and Recommendations: Copper eased by 11 points but remained flat after the initial dip to 2.914 while Palladium fell $2.95 trading at 792.00

Industrial and Base Metals Fundamental Analysis, May 19, 2015 – Forecast – Copper, Palladium & More

Analysis and Recommendations:

Copper eased by 11 points but remained flat after the initial dip to 2.914 while Palladium fell $2.95 trading at 792.00 Copper was steady at the start of the trading week on Monday, supported by a softer dollar following weak U.S. economic data. Copper has been consolidating since hitting this year’s high of $6,481 per tonne in early May, with no big spike in demand from top consumer China despite efforts by the government to shore up economic activity.

“Longer term, I don’t expect much demand increase from China. Their housing isn’t really doing very well and that’s where most of demand goes to,” said Daniel Ang, an analyst at Phillip Futures.

Chinese new home prices fell for the eighth straight month in April from a year earlier, with analysts warning that any recovery will take some time amid a huge inventory of unsold homes and a slump in real estate investment growth to the lowest since the global financial crisis.

Copper has been consolidating since hitting this year’s high of $6,481 per tonne in early May, with no big spike in demand from top consumer China despite efforts by the government to shore up economic activity.

“Longer term, I don’t expect much demand increase from China. Their housing isn’t really doing very well and that’s where most of demand goes to,” said Daniel Ang, an analyst at Phillip Futures.

Chinese new home prices fell for the eighth straight month in April from a year earlier, with analysts warning that any recovery will take some time amid a huge inventory of unsold homes and a slump in real estate investment growth to the lowest since the global financial crisis.

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more recent analysis and information in our weekly reports.

Today’s economic releases actual vs. forecast:

Cur.	Event	Actual	Forecast	Previous
AUD	RBA Assist Gov Lowe Speaks
JPY	Industrial Production (MoM)	-0.8%	-0.3%	-0.3%
JPY	Tertiary Industry Activity Index	-1.0%	-0.5%	0.4%
CHF	Retail Sales (YoY) (Mar)	-2.8%	-2.0%	-3.1%

Upcoming Economic Events that you should be monitoring:

Tuesday, May 19, 2015

Cur.	Event	Actual	Forecast	Previous
AUD	Monetary Policy Minutes
GBP	CPI (YoY) (Apr)
EUR	German ZEW Economic		49.0	53.3
EUR	CPI (YoY) (Apr)		0.0%	0.0%
USD	Building Permits (Apr)		1.065M	1.042M
CAD	BoC Gov Poloz Speaks