SMM PMI for steel end-use sectors: construction activity stagnated in January while manufacturing sectors maintained resilience

The PMI for steel downstream sectors stood at 46.65 in January, down 1.78 MoM and up 0.62 YoY. The seasonally-adjusted composite index stood at 49.99, up 0.41 MoM and 0.33 YoY.

Most construction and infrastructure projects have been suspended in January due to cold weather and the upcoming Chinese New Year. In terms of manufacturing, except for the performance of the machinery industry, which continued to be sluggish, producers across automobile, shipbuilding, and home appliance sectors maintained high enthusiasm for production, and these sectors remained in expansion territory. The index for production was 44.65, down 2.67 month-on-month and up 2.38 year-on-year. The index for new orders was 46.46, down 1.61 from the previous month and down 2.33 from the same period last year.