Purchasing Managers’ Indexes are suddenly up and Brazil has levied fines of $66 million against the operators of a mine whose dams failed last week.
PMIs Up, Good News for Commodities?
The recent uptick in PMI numbers in China and the developed world has led to optimism that a rebound in commodity demand and prices is just around the corner.
This is largely based on previous experiences of rising PMIs being accompanied by stronger consumption of natural resources, and both data evidence and logic support the historical argument.
Brazil Fines Samarco Mine Operators
Brazil’s president slapped preliminary fines of 250 million reals ($66.2 million) against a mine in the country’s southeast where two dams burst, killing nine people and coating a two-state area with mud and mine waste.
The fines, announced after President Dilma Rousseff flew over the affected area, come as federal prosecutors announced plans to work with state prosecutors to investigate possible crimes that could have contributed to the disaster at the mine, jointly owned by two of the world’s biggest mining companies, BHP Billiton Ltd. and Vale SA.