OECD raises China's economic growth forecast for 2023

China imported 12,700 mt of refined zinc in March, up 170.37% on the month but down 40.09% on the year. The imports totalled 19,300 mt in the first three months of 2023, down 53.75% YoY, while total exports of refined zinc during the same period stood at 2,400 mt. This pointed to net imports of 16,900 mt.

Stainless steel prices remained low last week, with spot #304 dipping about 150 yuan/mt WoW.

Nickel prices moved with some downward potential yesterday because of the poor downstream demand and trades amid economic recession.

Mitsubishi Motors expects its profitability in North America to improve significantly in the coming year due to reduced incentives, improved exchange rates and strong sales of the Outlander plug-in hybrid crossover.

At present, the CME Fed Watch tool shows that by the end of this year, the chances of the Fed holding back is only 1.2%.

The latest "China Automobile Dealer Inventory Warning Index Survey" released by the China Automobile Dealers Association (CADA) shows that the inventory warning index of auto dealers in April 2023 was 60.4%, down 6.0 percentage points year-on-year and 2.0 percentage points month-on-month. The index exceeding the 50 point mark means a sluggish automobile distribution industry.

The supply of coke declined as coking companies were less active in production in light of falling profits and increasing inventory.

The falling iron ore prices, the fifth round of coke price cuts and dipping steel scrap prices dragged down the costs of steel mills last week.

The United States and the Eurozone will announce interest rate decisions after China’s Labour Day holidays, and macroeconomic expectations will have a greater impact on copper prices. US GDP data in the first quarter showed that the economy has slowed down but inflation remains high. The April PMI and ADP’s non-farm data in the United States due during the holidays will further guide the direction of copper prices.

Analysts at US Citibank see the 1.2 percent quarterly rate of the U.S. labor cost index in the first quarter as a sign that there has been little relief from the underlying driver of excessive inflation, a tight labor market that pushes up labor costs and then passes them on to higher prices.