DEMAND--China's Auto Production Rises In July

摘要

China's auto-manufacturing industry, a major end-use driver for zinc demand, has continued its increase in July, leading the recovery for zinc demand. In July, total auto production increased to 1.798 million units, up from 1.66 million units in June. This was the highest production reading in 2020 to date as China looks to recover from the economic impact of Covid-19. The automotive industry is likely to remain as the main industry of concern impacting refined zinc demand in the immediate to short term, especially due to the impact of the Covid-19 pandemic. China's Steel PMI remained steady at 49.2 in July, from 49.3 in June. Demand for steel from southern China remained suppressed due to the rain and floods as it slowed construction projects in the area. This has seen a marginal fall of 0.7% in China's steel production from June figures to total 91.6Mt in July.