Copper ETPs see US$6.1mn of outflows ahead of China’s official PMI survey. Mixed signals from China’s manufacturing sector kept investors on edge last week. While China’s HSBC flash PMI shrank for the first time in 7 months in May, the official numbers released on Saturday showed a pick-up in growth. Concerns over potential strikes at Freeport-McMoRan Grasberg mine in Indonesia are likely to keep copper prices supported in the short-term. At the same time, ETFS Aluminum (ALUM) received US$1.8mn of inflows on strong positive price momentum. While the primary aluminum markets still appear to be oversupplied, prices have risen recently, breaking above US$1,900 per ton, the highest level in over 3 weeks.
Long Coffee ETPs receive inflows of US$4.4mn as prices slump. With Arabica coffee now trading 15% below the level at the start of 2013, some investors are starting to think that prices may have reached a bottom. Currently, the market suffers a supply glut after farmers over-planted in response to the 2010-2011 price spike. While a potent fungus is ravaging coffee bushes in Central America and threatens to reduce global supplies, a bumper harvest in Brazil is likely to keep the market well supplied. However, the Brazilian government could intervene if prices fall further.
Key events to watch this week: All eyes will be on the US non-farm payrolls data at the end of week after last month’s figures surprised to the upside. PMI data releases from the euro area, US and UK will help measure the strength of recovery in global manufacturing. After last month’s cut in interest rates, no further cuts are expected from the ECB this week. The market also expects the Bank of England to maintain the status quo.
ETFS Physical Platinum Shares (NYSEArca: PPLT)