Manufacturing Activity in China Contracts for Second Consecutive Month

Manufacturing activity in China contracted for the second consecutive month in June,
indicating weakness in a key sector that Beijing is relying on to revive the economy.
The National Bureau of Statistics reported on Sunday that the official manufacturing Purchasing Managers’ Index (PMI) was 49.5 points, the same reading as in May.
This figure aligns with economists’ expectations in a Bloomberg survey.
It is noteworthy that any number above 50 points indicates an expansion in activity.

Topic

China

Oil

China

China Implements New Rules to Protect Rare Earth Supply

It has introduced new regulations to govern the mining, smelting,
and trading of rare earth elements to protect national security and ensure the orderly development of this industry.
The measures, starting from October 1, include state ownership of these resources and government oversight of industry expansion.
Companies will be required to establish a registry system to accurately track product movements.
These regulations follow previous measures to restrict exports of certain elements like germanium
and gallium and ban the export of rare earth magnet production technology.
China justifies these restrictions as necessary to protect national security.
The announcement comes amid rising global demand for rare earth elements, particularly in the European Union, which seeks to boost its domestic production
of essential minerals for the green transition by 2030.
The regulations coincide with the EU’s preparations to impose temporary tariffs on Chinese electric vehicles to protect
the European market from state-subsidized inflows,
with upcoming discussions on the proposed tariffs.

Oil

Where Are Oil Prices Headed?

Oil prices are expected to remain stable in the second half of 2024,
as reduced demand from China balances with the potential increase in supply from major producers
and geopolitical tensions in the Middle East.
Analysts predict that Brent crude will average $83.93 per barrel,
while U.S. crude is expected to average $79.72 per barrel.
So far, Brent futures have averaged $83.4 for 2024,
with occasional peaks reaching $92.18 due to supply risks linked to Middle East conflicts.
Some analysts anticipate prices could rise to $90 or higher due to factors like increased summer consumption,
geopolitical climate, and production adjustments by OPEC.
Oil demand growth for 2024 is expected to range between 0.99 and 1.4 million barrels per day,
with increased production from non-OPEC countries.
OPEC+ has decided to slowly reduce production by 2.2 million barrels per day over the next year.

Manufacturing Activity in China Contracts for Second Consecutive Month

Manufacturing Activity in China Contracts for Second Consecutive Month

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