Base metals prices on the Shanghai Futures Exchange were mostly down during Asian morning trading on Monday, with market sentiment dampened by disappointing Chinese economic data released over the weekend.
China’s official manufacturing PMI fell to 51.5 in June from 51.6 in the prior month and falling short of a forecast reading of 51.9. A reading above 50 indicates expansions, while below contraction. Meanwhile, the country’s non-manufacturing PMI was slightly above expectations at 55, against a forecast reading of 54.7.
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Global silico-manganese supply and manganese ore supply rose by 28% and 2% year on year respectively in May, according to the latest data from the International Manganese Institute.
Zorba suppliers in the United States are pounding the pavement in search of new outlets, with evaporating demand from China creating a supply overhang that is beginning to erode some domestic secondary aluminium scrap prices.
The Midwest aluminium premium in the US logged a second consecutive drop, with market participants pointing to the growing backwardation of aluminium prices on the London Metal Exchange as the primary driver.
Zinc concentrate treatment charges (TCs) rose to their highest level so far this year at the end of June on a cif Asia Pacific basis, while the head of the Chinese zinc association has called for a 10% cut in national production to support zinc prices and TCs.
