Today at 1415 GMT Federal Reserve will release monthly result of Industrial Production.
According to forecast the index may fall to 0.2% for January from December 0.3%. This will be the third consecutive fall in industrial production.
Earlier in this month French, Italian and Euro Industrial Production has shown negative result. They fell to -0.3%, -0.9% and -0.7% respectively. German Industrial Production was down to -0.6% and the index for China fell to 9.7% in January.
This fall puts threat directly on demand for industrial metals. Base metals have already got poor start in this year. In last month Copper dropped by 2.62%, Nickel, Zinc and Lead by 1.55%, 2.13% and 3.63% respectively. S&P GSCI Index for Industrial Metals fell by 1.92% in one month.
Surplus inventories and waning demand at major metal consumers has subdued metal prices. Another negative industrial result from world second largest consumer may further deepen metal prices. We may see downside movement in base metals if index falls below expectation.