[From St**h**d this morning]China is back in swing. Factories...

[From St**h**d this morning]

China is back in swing.

Factories are ordering more equipment, materials and the like than they were last month, the highest number since April 2012.

The NBS’ official number .. was a propellor for base metals and iron ore, with the first indications that China is recovering from its Covid lockdowns and Lunar New Year lull.

Copper lifted 1.6% above US$9000/t to US$9101/t, while nickel was up 0.4% to US$24,890/t with zinc and aluminium also up. Iron ore swaps rose 2.5% to US$126.50/t according to ANZ Research.

“This was the first set of comprehensive data released since COVID-19 restrictions ended late last year. It comes ahead of next week’s National People’s Congress where a new growth target will be disclosed,” ANZ’s John Bromhead said in a note.

Iron ore futures were boosted by a first rise in Chinese home sales in 20 months, with My Steel reporting two-thirds of steel companies expect sales to improve after a 1.7% fall in steel production to 1.018Bt in 2022, Bromhead noted.

“Expectations of lower demand from the electric vehicle sector may need to be reset, after Deputy Finance Minister Xu said China will extend the sales-tax exemption for new energy vehicles and is looking at new policies to further support the sector. The Ministry of Commerce is also looking at measures to expand consumption.”