Chinese manufacturing PMI dips to six-month low in January

The nation’s purchasing managers index fell to 50.5 in January from a reading of 51 in December

Performers display a dragon dance during a Chinese New Year parade in Hong Kong

The Chinese Dragon’s taste for raw materials is waning as manufacturing slows, giving a jolt to the commodity markets feeding its hitherto rapid growth.

The nation’s purchasing managers index — its official snapshot of manufacturing activity — fell to 50.5 in January from a reading of 51 in December and experts are bracing themselves for a weaker performance this year. A reading of 50 indicates stagnation.

The figures — which follow fears over slowing growth in the region — made the oil market jittery: Brent crude eased 40 cents to $106.8 a barrel and West Texas Intermediate fell 71 cents to $96.78.

Metals also took a beating: copper extended its longest losing streak since 1996 and aluminium was near four-year lows. Rubber hit its lowest level since September 2012.

ING Bank economist Tim Condon said the figures indicate "a slowdown in industrial production growth from 10 per cent in the final quarter of last year to the high single digits in Q1 2014".