November 30, 2021 – While the Western press continues to try to stir up fear with the Omicron variant, China is proving that you can maneuver well through crises with consistent measures and deliberate actions. This is shown not only by the Chinese Manufacturing Purchasing Managers Index (PMI), which moved back into the expansion zone in November 2021, but also by the production index, which increased significantly by 3.6 percentage points to 52%. Profits of Chinese companies have also increased significantly. Base metals are currently moving sideways on the LME and iron ore on the DCE is moving upwards again.
Chinese Manufacturing PMI increased
The Chinese Manufacturing Purchasing Managers Index (PMI) moved back into the expansion zone in November 2021, rising 0.9 percentage points from the previous month to 50.1. From a supply and demand perspective, the production index also increased significantly by 3.6 percentage points to 52, which was also in the expansion zone. In particular, the Chinese economy expanded by 3 percentage points in the pharmaceutical, automotive, electrical machinery and industrial equipment sectors.
Chinese companies’ profits rise by over 42%
According to official statistics, Chinese enterprises’ profits increased by 42.2% in the January-October period compared with the same period in 2020. Compared to January-October 2019, they even increased by 43.2%.
Base metals move sideways
Base metals on the London Metal Exchange (LME) are moving sideways this morning with little swings so far. Nickel, aluminum, zinc and copper are holding roughly at yesterday’s values. For tin and lead, it is currently going up. Lead futures are up about 0.9% and tin futures are up 0.6%.
Dalian iron ore prices rise
Chinese steel producers are currently stocking up on iron ore again. This has caused iron ore prices on the Dalian Commodity Exchange (DCE) to rise above $100 per ton again in the meantime. Iron ore deliveries to China have also fallen by 6.39 million tons compared with the previous year. According to analysts, this and other bullish news indicate that iron ore prices will find further support in the near future.
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Disclaimer: Many things here represent our opinion. Others are information from the Internet. We can therefore never claim to be correct or complete. And never base a business decision solely on the news you receive from us.