Industrial and Base Metals Fundamental Analysis – August 20, 2015 – Forecast – Copper, Palladium & More

Analysis and Recommendations:

Copper became attractive to buyers today as the dollar eased making the metals a cheap buy at 2.293 while Palladium dipped $2.20 to 594.80. Analysts said a weakening trend in base metals at the London Metal Exchange (LME) on concern that demand may falter in China as an equity rout resumed and subdued demand at domestic spot markets mainly weighed on copper futures here.

Copper’s decline comes as all industrial metals continue to retrench from the boom-time peaks of 2011. As with other base metals, copper has suffered from concerns about a global supply surplus and fears about future demand from China, which consumes around 45% of the metal. While many analysts say faltering Chinese demand will continue to lead copper lower, others predict prices will rise by the fourth quarter because Chinese buying will actually pick up at a time when global supply begins to fall.

Many analysts believe that copper still has further to fall given the current fears for demand in China. A slowdown in Chinese manufacturing and construction would significantly reduce demand in copper, which is used mainly for wiring, pipes and roofing.

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:

 

Upcoming Economic Events that you should be monitoring:

Thursday August 20, 2015

Government Bond Auctions

Date Time Country

Aug 19 11:30 Germany Eur 5bn Sep 2017 Schatz

Aug 19 11:03 Sweden Holds bond auction

Aug 20 10:30 Spain Auctions Bonos/Obligaciones

Aug 20 11:30 UK Auctions 4.25% 2036 Gilt

Aug 21 17:30 Italy Announces details of CTZ/BTPei on 26 Aug