Recent economic news points towards mixed economic and manufacturing activity across key regional markets.
Mexico’s economy shrank another 2.6% in May from April after a record decline the previous month, official data showed on Friday, dimming the chances of a sharp rebound in activity from the economic destruction of the coronavirus pandemic. The economy contracted a record 22.7% compared with the same month last year, the biggest fall since modern records began in early 1993, according to figures put out by national statistics agency INEGI. In April, the economy shrank by 19.8% on the year.
Brazilian manufacturing expanded in June for the first time in four months, a survey of purchasing managers’ activity showed on Wednesday, coming back to life after three months in a state of near paralysis due to the COVID-19 crisis. The highest output and new orders since November last year helped propel IHS Markit’s headline Brazil manufacturing purchasing managers index (PMI) to 51.6 in June from 38.3 in May.
China’s soybean imports in June from top supplier Brazil soared to a record high, according to customs data released on Sunday, driven by growing demand for soybeans as China’s pig herd recovers after deadly outbreaks of African swine fever.
The world’s top soybean buyer brought in 10.51 million tonnes of the oilseed from the South American country in June, up 91% from 5.5 million tonnes in the previous year, data from the General Administration of Customs showed. The June figures were also up 18.6% from May imports from Brazil at 8.86 million tonnes.
China appears to be almost single-handedly supporting global metals prices on the back of a return to high levels of industrial activity. But other Asian markets are still slowly emerging from COVID-19 related lockdowns. How is this impacting iron ore, steel, coking coal, scrap and alumina demand and prices?
Julien Hall, director of Metals for APAC, S&P Global Platts, and Paul Bartholomew, head of metals news and insight, APAC, Platts, discuss key findings from the latest quarterly spot market trade reviews, and ponder the implications of these on the current quarter. Listen here.
The Covid-19 virus is severely affecting international trade, but what are the long-term implications on global trade? Three, in particular, stand out and forecast a challenging route.
This article from Forbes does an excellent job of outlining three primary implications of the global pandemic on trade.