https://www.miningweekly.com

Down 2.1% last week, IHS Materials Price Index tracks lower for third week

12th May 2017

By: Henry Lazenby

Creamer Media Deputy Editor: North America

     

Font size: - +

VANCOUVER (miningweekly.com) – Lacklustre Chinese manufacturing data, coupled with moves by regulators to crack down on risky investments, is fuelling concern that Chinese demand growth is set to decelerate and that it had pushed down commodity prices over the last three weeks, market intelligence firm IHS Markit said in a statement Thursday.

Economist Cole Hassay pointed out that the IHS Materials Price Index (MPI) dropped 2.1% last week, as eight of the ten sub-indices fell. The MPI has now declined 11.2% from its mid-February high.

Freight rates experienced the sharpest decline last week, falling 6.1% owing to declining fuel prices and jitters about Chinese trade. Oil fell by 3%, its third consecutive decline as concerns of oversupply in global markets persisted.

Meanwhile, the ferrous metals subindex dropped 4.5% on plunging iron-ore prices. Record iron-ore port stocks, Chinese steel export markets being closed off by trade actions, and concern about softening real estate markets have combined to pop the iron-ore bubble. Fibre prices came in as the strongest sector last week, rising 0.4% only.

Hassay said the April Purchasing Manager Index (PMI) reports and fresh US employment data highlighted the weak data last week.

“April's US employment report was solid with 211 000 jobs added. The PMI reports, though, did show some softening, with the April global manufacturing composite index inching back to 52.8 from 53 in March.

“Masked within this slight decline; however, was the retreat in the Caixin Chinese manufacturing index, which moved down to 50.3, close to the break-even 50 mark. Doubts about Chinese manufacturing activity coupled with ongoing efforts to restrain credit growth are raising concerns about commodity demand in the second half of the year and undermining prices,” Hassay stated.

Edited by Creamer Media Reporter

Comments

Showroom

Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 
Rio-Carb
Rio-Carb

Our Easy Access Chute concept was developed to reduce the risks related to liner maintenance. Currently, replacing wear liners require that...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.352 0.432s - 112pq - 2rq
Subscribe Now