Better than expected Chinese industrial data keeps prices stable

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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.

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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.