Stronger PMI data could support base metals: Commerzbank

LONDON (Scrap Monster): The rise in the Chinese purchasing managers index is supporting base metals, said Commerzbank in a commodity snippet. The bank notes the Chinese PMI moved to 50.2 in October this year.

According to the bank, this was the first time in three months the reading was above 50, and a figure above 50 indicates manufacturing is expanding. There are signs that China’s economy is strengthening and the firm says they believe China’s economy has bottomed.

“More robust economic growth again (in China), supported among other things by numerous infrastructural projects, is likely to spark solid demand for commodities in general and for metals in particular. If the ISM index for the manufacturing sector in the U.S. – also set to be published today – likewise proves to be a positive surprise, metal prices could gain further buoyancy,” they concluded.

As of 7:49 a.m. EDT, LME copper was up $80 to $7,839.50 a metric ton, and aluminum was $24 stronger at $1,930. Nickel, zinc, lead and tin were also higher.