EUROPEAN MORNING BRIEF 02/07: Most SHFE base metals prices down on disappointing China data; global SiMn supply up 28% y-o-y in May; zorba supply overhang hurts US Ali scrap market

Good morning from Metal Bulletin’s offices in Asia as we bring you the latest news and pricing stories on Monday July 2.

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.

Check Metal Bulletin’s live futures report here.

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.

What to read next
Aluminium market participants in the US anticipate stable business supported by continued tariffs and potential interest rate cuts, while industry sources in Europe and Latin America are watchful of potential new trade restrictions.
Donald Trump’s second term as US president is not likely to have too much of an impact on China’s electric vehicle (EV) and new energy markets, despite broader concerns over potential tariff hikes which might bring challenges to both China and the US, sources told Fastmarkets on Thursday November 7.
Chinese authorities officially announced that they will be expanding the range of permitted recycled copper and aluminium imports from mid-November, but market participants Fastmarkets spoke to at a conference this week are not convinced that this will mean more material will be imported into the country in the short run.
Steel market participants in both the North and Latin American markets are keeping tabs on the impact of trade relations with China in the aftermath of Donald Trump’s victory in the 2024 US presidential elections.
Donald Trump has previously said he plans to repeal the Inflation Reduction Act (IRA), at least partially, and rescind its unspent funds.
Fastmarkets is inviting feedback on the pricing methodology for MB-AL-0004 aluminium P1020A premium, in-whs dp Rotterdam and MB-AL-0346 aluminium P1020A premium, in-whs dup Rotterdam ahead of the definitive period of the European Union’s Carbon Border Adjustment Mechanism which starts from January 2026.