China copper downstream activity expanded in Nov

SHANGHAI, Dec 4 (SMM) – Activity across Chinese copper downstream industries unexpectedly expanded for a third straight month in November, as the upcoming shopping season and the rush to fulfill annual production targets prompted companies to step up operations.

A slowdown in new orders growth, however, grows concerns about future consumption.

The latest SMM survey showed that the purchasing managers' index (PMI) across construction, power, electronics, transport and home appliance sectors in China inched up to 50.84 last month, standing above the 50-mark that separates expansion from contraction for a third straight month.

SMM had expected the index to fall from 50.66 in October to 49.22.

All the sectors were in expansion territory in November, with electronics being the best performer thanks to the rise of 5G and forthcoming shopping season at home and abroad.

Construction unexpectedly returned to growth last month, as builders in southern China rushed to complete projects by year-end. This came despite more construction sites in the north suspending operations in increasingly colder weather.

Robust demand across southern regions also boosted the power sector last month, which expanded for a third month in a row.

The sub-index for production rose 0.52 to 52.41 in November, as a high season continued and backlogged orders needed to be fulfilled.

New orders sub-index dipped to 50.48 last month, and the sub-index for new export orders slipped to 49.29, indicating that consumption domestically and externally is losing steam.