This also this morning from Mining.com"...Chinese PMI data...

This also this morning from Mining.com

"...Chinese PMI data showed manufacturing activity hit a 13-month high in June, but in anoteCapital Economics said market participants, like the research firm itself, are assuming that the indicator “reflects the lifting of lockdown restrictions rather than an economic revival”:

“It is increasingly clear that concerns about demand are taking precedence of supply issues in the metals markets.

“The prices of all the base metals fell by over 20% in the second quarter, despite still high energy prices (which raise the cost of metals production), ultra-low exchange stocks and, in most cases, subdued refined output.

“We think that prices have further to fall in the second half of the year, but we suspect that the big falls are now behind us.”

“It is increasingly clear that concerns about demand are taking precedence of supply issues in the metals markets.

“The prices of all the base metals fell by over 20% in the second quarter, despite still high energy prices (which raise the cost of metals production), ultra-low exchange stocks and, in most cases, subdued refined output.

“We think that prices have further to fall in the second half of the year, but we suspect that the big falls are now behind us.”

One key takeaway here in my opinion is that energy costs are extremely high while metal prices ae dropping. This will lead to some suppliers becoming unviable given energy, wages and other inflationary pressures. Mallee have secure power at least in Tassie. Hydro based so less price pressure.