August 10, 2020

Global Metals User PMIs Improve In July


  • According to CNBC, Chinese exports rose 7.2 percent from July 2019 to July 2020 while imports fell 1.4 percent. China posted a trade surplus of $62.33 billion last month, a figure that was much higher than the $42 billion economists had expected. China’s trade surplus was $46.42 billion in June.
  • The IHS Markit Global Steel Users Purchasing Managers’ Index (PMI) rose to 50.7 in July from 49.4 in June, the first improvement in the health of the global steel-using industry since November 2019. IHS Markit said, “Steel users reported a solid uplift in production at the start of the third quarter, following just a mild increase in June.” Though marginal, the improvement was “attributed to easing COVID-19 related restrictions, which led to increased new orders at many firms. All three monitored areas registered higher output, led by European users.”
  • The IHS Markit Global Aluminum Users PMI also was above the 50.0 mark. It was the first time in eight months the reading was in expansionary territory. IHS Markit said, “The global aluminum-using industry saw a return to growth at the start of the second half of 2020, driven by a renewed upturn in new orders and stronger output growth than seen in June.” The analysis also said, “Job numbers and export sales both continued to fall, albeit at slower rates” and cost pressures “quickened to the sharpest [level in] 20 months, as firms saw rising freight costs and metal prices.”
  • The IHS Markit Global Copper Users PMI rose from 49.0 in June to 50.7 in July, signaling the first improvement in the health of the global copper-using industry since November 2019. IHS Markit said, “The expansion was supported by rises in both output and new orders at the start of the third quarter, as firms made steps to increase capacity as lockdown measures were eased further.” Additionally, “Production levels grew at the strongest pace in nearly two years, with copper users in Europe registering the fastest increase of all three monitored regions.”
  • As reminder, all PMI readings can be found here.