
The data on China's economy in January and February 2018 were released yesterday by the National Bureau of Statistics (NBS). Vice president of Zhongda Futures, Jing Chuan, remained bullish on the development of China's economy. He added that the rapid growth in value added applications in the industrial sector suggested that industrial consumption was picking up, and this is likely to give support to the metals market, including steel and aluminium.
Jiang Xingchun, director of Soochow Futures Institute, also showed great confidence in China's economy. He added that nonferrous metals will not see a significant rally until downstream consumption recovers.
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According the data from NBS, the total value added across industrial enterprises rose by 7.2% year on year. Total investment in fixed assets (excluding rural households) in January and February went up 7.9% on a yearly basis and the total retail sales of consumer goods in January and February jumped by 9.7% from the same period last year.
In the automotive sector, production and sales of automobiles in China slumped in February, according to data from the China Association of Automobile Manufacturers (CAAM). Production of cards fell 36.6% from last month and 20.8% YoY, and stood at 1.71 million last month. February's sales dropped 38.9% month on month, and 11.1% year on year, and stood at 1.72 million. China Automobile Dealers Association (CADA) on the other hand, projected that China's car sales are expected to be flat in 2018 due to sluggish demand.
China's industry for new energy cars is likely to see faster growth, supported by new targets for green vehicles set up by theGovernment, said chairman of the Beijing Automobile Group, Xu Heyi. The report highlighted that promoting new energy vehicles is part of China's drive to become a globally competitive manufacturing nation.
China’s aluminium market in 2018 will be primarily driven by how the manufacturing sector boosts domestic demand. Since, protective policies of the U.S. will squeeze semi-finished exports, growing demand from the transport and contruction sector can move the huge aluminium inventory in the country.
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