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Better than expected Chinese industrial data keeps prices stable

Date: Wed, 24 Aug 2011 | Author: Paul Sanderson

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A slight increase in the HSBC flash purchasing managers index (PMI) for China was better than market expectations.

This helped some small increases in prices on the LME.

The market had expected the PMI to show a sharp slowdown in Chinese industrial activity, but it edged up to 49.8 in August from July’s final reading of 49.3. A mark below 50 shows contraction rather than expansion.

However, in a report on the PMI, HSBC said that a reading of as low as 48, still pointed to annual growth of 12 to 13 per cent in industrial output and 9 per cent growth in GDP, despite this month showing a contraction in factory orders.

Three-month copper was up to $8,875 (£5,376) on Tuesday as a result. This compares to $8,830 the day before.

Aluminium was little changed, down a touch to $2,358 (£1,428) from $2,362 (£1,430) the day before. Alloy was at $2,260 (£1,369) from $2,280 (£1,381) on Monday.

Lead was up to $2,319 (£1,405) on Tuesday from $2,296 (£1,390) the day before. Nickel was down a little to $21,025 (£12,735) from Monday’s $21,075 (£12,762).

Tin jumped up to $23,635 (£14,316) on Tuesday from $23,150 (£14,018) a day earlier. Zinc was priced at $2,195 (£1,330) from $2,168 (£1,313).

Steel was up to $575 (£348) from $570 (£345) on Monday.

Category: Recycling
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