China PPI rose 0.5% MoM in May, slowing 1.2 ppt from April. Industrial upgrading
and equipment replacement pushed black metal smelting & rolling prices up 1.2%
MoM. Accelerating electrification and AI-driven compute demand boosted
nonferrous metal, electrical machinery and computer-related prices: nonferrous
metal smelting & rolling +1.1% MoM (tin smelting +4.8%, copper smelting +3.1%);
computer, communications & other electronic equipment manufacturing +0.6% (IC
packaging & testing +2.9%; external storage devices & components +1.9%);
electrical machinery & apparatus manufacturing +0.5% (optical fiber
manufacturing +8.0%; wire & cable +1.2%). Seasonal demand supported additional
sector gains. Volatility in international crude has transmitted to domestic
industries, causing some prices to decelerate or shift from rises to declines.
