Industrial and Base Metals Fundamental Analysis – August 26, 2015 – Forecast – Copper, Palladium & More

Analysis and Recommendations:

Copper added 39 points to 2.2998 as markets recovered a bit and the PBOC started providing additional liquidity to the markets today. Palladium still fell drastically today to 553.80. Understanding the Chinese copper market requires insight into how much unreported inventory has been built up over the years at banks as collateral for loans and by speculators. The pivotal role such inventories, referred to in the industry as “hidden,” in nickel’s long-term bear market illustrates their importance to the balance of supply and demand. The tug-of-war between Chinese metals traders the country’s giant mining and smelting companies has raised volatility in global copper markets.

Companies Impacted: China is the No. 1 global copper consumer. Slowing demand is a major concern, and BI regularly visits the country to gain a better picture for investors. The Chinese economy affects the largest miners in the world, such as Codelco, Jiangxi Copper, BHP Billiton and Freeport-McMoRan.

The price of copper, a base or nonferrous metal that either leads or reacts to the state of the global economic climate has had a very rough year. This red metal is a basic building block for infrastructure around the world. It is one of the most important metals when it comes to construction. The trend of the copper price signals that a bad case of the economic flu continues to sweep across the globe.

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:

Wednesday, August 26, 2015

Government Bond Auctions

Date Time Country

Aug 25 00:00 UK Announces details of Jan 2021 gilt

Aug 25 17:30 Italy Announces details of BTP/CCTeu on 28 Aug

Aug 25 19:00 US Holds 2-year note auction

Aug 26 11:10 Italy Eur 3bn 0.15% Aug 2017 CTZ

Aug 26 19:00 US Holds 2-year FRN note auction

Aug 26 12:05 Norway Holds bond auction

Aug 26 19:00 US Holds 5-year note auction

Aug 26 19:00 US Holds 2-year FRN auction

Aug 27 11:03 Sweden Sek 0.5bn 0.125% I/L Jun 2019, Sek 0.5bn 1% Jun 2025 bonds

Aug 27 19:00 US Holds 7-year note auction

Aug 28 11:10 Italy Auctions BTPs/CCTeus

Sep 01 11:15 Austria Holds RAGB bond sale

Sep 01 00:00 UK Announces details of 3.5% 2045 Gilt

Sep 02 11:03 Sweden Holds bond auction

Sep 02 11:30 Germany Eur 4bn 0.25% Oct 2020 Bobl

Sep 02 11:30 UK Auctions new Jan 2021 Gilt

Sep 03 10:30 Spain Auctions Bonos/Obligaciones

Sep 03 11:10 France Auctions OATs

Sep 03 00:00 US Announces details of 3yr note on 08 Sep, 10yr note on 09 Sep

Sep 03 00:00 US Announces details of 10-year note on 09 Sep