Aluminium saw a little decrease, finishing at 201.8, down -0.12%, as a result of the restart of production and power supplies at an Inner Mongolian aluminium smelter. Concerns about supply disruptions in China and abroad were allayed when Yunnan and other locations saw an improvement in power supply, which in turn led to stable production by aluminium smelters.
Warehouses under the supervision of the Shanghai Futures Exchange saw a 10.1% increase in aluminium inventories from the Friday before, indicating a build-up in stock levels. A stronger rate of growth in both production and new orders helped the Caixin China General Manufacturing PMI to climb to 50.9 in February 2024, above market expectations.
China’s real estate market, a major user of industrial metals, is still beset by difficulties, nevertheless. In February 2024, the China NBS Composite PMI Output Index was steady at 50.9, its highest reading since September 2023. This was the second straight month the index was stable.
While manufacturing contracted for the fifth consecutive month, the service sector grew at its fastest rate in the previous five. These numbers demonstrated the different impacts of the Spring Festival vacation on manufacturing and service operations.
