China powers on but inflation risk persists

摘要

The SHFE cash and 3-Months prices have put in a solid performance since the start of June, up by 3.5% and 2.7% respectively, at Rmb 17,400/tonne and Rmb 17,250/tonne. This is due to strong domestic demand and record semis production and exports. Apparent semis demand hit 1.8m tonnes in May, up 13.7% y-o-y. There has been strong growth in the construction, electrical and packaging sectors which has offset weakness in the auto sector.