SHANGHAI, Apr. 25 (SMM) – SHFE copper staged a significant rebound April 24, with the SHFE 1308 copper contract settled at RMB 50,600/mt. SHFE copper positions hit a record high. However, manufacturing data in China, US and Europe were all reported disappointing, and China’s industrial economy remained weak.
Ernst & Young: China Leads M&A Activity in Mining and Metals in 2012
The global metals and mining sector completed 941 deals worth USD 104 billion in 2012, down 7% and 36% 2011. Of these, 147 deals were done in China with the value totaling USD 2.17 billion, accounting for 21% of the global total. This also made China the most acquisitive nation in the sector in terms of value.
SMM View: With the government encouraging domestic companies to go global, China is expected to continue to lead M&A activities in the sector this year given low grade of domestic ore and limited supplies. However, this strong momentum may be impeded by oversupply of some categories.
Zhou Xiaochuan: Short-Term Growth May Be Sacrificed for Reform
People’s Bank of China Governor Zhou Xiaochuan said China is undergoing economic restructuring, and we need to sacrifice short-term growth for the purposes of reforms and structural adjustments.
SMM View: Zhou Xiaochuan’s remark presented the forecast for China’s economic situation in the short term.
China’s Industrial Activities to Remain Weak
Many investment banks expressed that the disappointing HSBC China PMI may indicate continual depression in China’s industrial activities, and the country’s economic recovery is expected to remain slow.
Poor Manufacturing Data Triggered Concerns over Global Recovery
SMM View: The weakening manufacturing data in China, US and Europe triggered concerns over sagging industrial outlook across the globe. However, as uncertainty existed to China’s manufacturing activity, the future data for China will likely be most influential.