Industrial and Base Metals Fundamental Analysis – November 23, 2015 – Forecast – Copper & Palladium

By:

Published: Nov 20, 2015, 14:25 UTC

Analysis and Recommendations: Copper gained 14 points to trade at 2.091 after the Chinese central bank lowered some of its lending rates and Palladium

Industrial and Base Metals Fundamental Analysis – November 23, 2015 – Forecast – Copper & Palladium

Analysis and Recommendations:

Copper gained 14 points to trade at 2.091 after the Chinese central bank lowered some of its lending rates and Palladium soared $9.75 to 551.75. Glencore, the commodity trader and miner that’s lost two-thirds of its value this year, may be on the cusp of a rebound if analyst recommendations to investors are any guide.

Glencore is down 15 percent this month as prices for industrial metals such as zinc; copper and aluminum have sunk to the lowest in more than six years. Weak Chinese demand for raw materials has hurt prices, trimming profits for producers like Glencore and wiping $250 billion off the value of the Bloomberg World Mining Index this year.

Even with copper prices reeling from their biggest rout in six years, there were few signs at China’s biggest copper conference this week of manufacturers being tempted back to buy more of the metal.

At the Shanghai meeting, big copper users, ranging from wire manufacturers to plumbing material makers, in the world’s top consumer told a similar story: there was little point in lifting buying due to sluggish order books.

The price of the metal, often regarded as a benchmark of global industrial demand, took a near 5 percent dive this week and is set for its worst seven days since mid-January, with the drop compounded by heavy fund selling and spurring debate about whether prices are near a bottom or on the brink of another leg down.

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:

Cur.	Event	Actual	Forecast	Previous
JPY	BoJ Monthly Report
EUR	German PPI (MoM) (Oct)	-0.4%	-0.2%	-0.4%
EUR	ECB President Draghi Speaks
EUR	German Buba President Weidmann
USD	FOMC Member Bullard Speaks
USD	FOMC Member Dudley Speaks

Upcoming Economic Events that you should be monitoring:

Monday, November 23, 2015

Cur.	Event	Actual	Forecast	Previous
	Japan – Labour Thanksgiving Day
EUR	German Manufacturing PMI (Nov)		52.1	52.1
EUR	German Services PMI (Nov)		54.3	54.5
EUR	Manufacturing PMI (Nov)		52.3	52.3
EUR	Markit Composite PMI (Nov)			53.9
EUR	Services PMI (Nov)		54.0	54.1
EUR	Eurogroup Meetings
USD	Manufacturing PMI (Nov)			54.1
USD	Existing Home Sales (Oct)		5.44M	5.55M
USD	Existing Home Sales (MoM) (Oct)			4.7%