Manufacturing in Africa’s second largest copper producer, Zambia, is expected to receive a boost in the first half of 2019. This follows the 8.34% price cut in diesel prices to K13.4pl by the Energy Regulation Board (ERB) on 28 February.
Purchasing Managers Index (PMI) readings for Zambia after March are projected to be above 50 as factory activity cost curves ease and input inflation lowers. Diesel forms a key input in the copper producers manufacturing processes. PMI readings for most African nations are expected this week from Markit Economics at which the January reading showed improving conditions however below 50 the borderline for growth and contraction.
Crude markets are currently priced at levels reflecting the rising inventories in the US offsetting the supply cut measures by the Oil Producing and Exporting Countries (OPEC) club led by defacto leader Saudi Arabia and an autopsy of sanctions on Iran and Venezuela. Oil is currently trading for USD$65.07/bbl.