China PMI spurs sentiment, commodity imports may have front-run

Growth driver: The production line at Volkswagen Anhui Automotive’s factory in Hefei. Manufacturing is a key segment of China’s economy and a major demand centre for metals such as copper and steel, as well as energy required to make goods. — Bloomberg

THE return of China’s key manufacturing index to positive territory for the first time in six months has sparked optimism that commodity demand from the world’s biggest buyer of natural resources is poised to accelerate.

The official purchasing managers’ index (PMI) rose to 50.8 in March from 49.1 in February, rising above the 50-level that separates growth from contraction, and hitting the highest mark since March 2023.