Base metals: demand apparent on Chinese economic data- ANZ

Analysts at ANZ explained that base metals were mixed overnight, with steel-related metals holding up well after losses earlier in the week.

Key Quotes:

"Positive economic data in China –– such as resilient retail sales, industrial production and fixed asset investment helped alleviate concerns in the market that underlying demand for metals was weakening. A slightly weaker USD also helped increase investor appetite.

This exuberance about China also helped push iron ore higher. Physical prices rose strongly, while steel and iron ore futures in China were also higher. This was despite data showing a slight dip in steel production. Output in May hit 72.26 million tonnes, which was up 1.2% y/y. However this was down from 72.78 million tonnes in April."