Copper Fundamental Forecast – September 16, 2016

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Published: Sep 15, 2016, 11:44 UTC

Copper drifted down 5 points after a significant rally this week and is trading at 2.15 after falling as low as 2.07. Yesterday copper has hit a

Copper Fundamental Forecast – September 16, 2016

Copper drifted down 5 points after a significant rally this week and is trading at 2.15 after falling as low as 2.07. Yesterday copper has hit a three-week high, lifting European mining shares, as the US dollar falls and recent economic indicators in top consumer China point to brighter demand prospects.

The US dollar fell versus a currency basket as expectations that the US Federal Reserve will raise interest rates next week receded. A weaker US dollar makes dollar-priced commodities like copper cheaper for non-US investors.

China’s factory output and retail sales increased faster than expected in August, with growth supported by a strong housing market and government infrastructure spending.

Net new yuan loans by Chinese banks, meanwhile, more than doubled July’s tally, aided by the central bank’s accommodative monetary policy.

“The demand picture is relatively good for copper in terms of China and I think we’ve worked through a lot of those excess inventories,” said Oxford Economics analyst Dan Smith.

The supporting Chinese economic data released by the National Bureau of Statistics of China improved the sentiment in the copper market on September 13. China is the largest copper consumer—it accounts for about 45% of the total global consumption. As a result, China’s economic data influence copper’s price and demand trends. China’s industrial production for August grew 6.3% year-over-year—the fastest grow in the past five months. This is better than the previous month’s growth of 6% and the market’s expectation of 6.1%.

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September 16, 2016

Country	Name	Volatility		Previous	Cons
EUR	Labour cost		2	1.7
USD	Consumer Price Index Core		2	247.71
USD	Consumer Price Index M		2	0	0.1
USD	Consumer Price Index M		2	240.65	240.65
USD	Consumer Price Index CORE M		2	0.1	0.2
USD	Consumer Price Index CORE Y		3	2.2	2.2
USD	Consumer Price Index Y		3	0.8	1
USD	Michigan Consumer Sentiment		3	89.8	91
USD	Baker Hughes US Oil Rig Count		2	414