[SMM Steel downstream PMI] the peak season state of the construction industry continues to show a weakening trend in the manufacturing industry.

Summary of key points:

In May 2019, the PMI composite index was 51.10, down 7.86 from the previous month and up 0.13 from the same period last year. After the quarterly adjustment, the composite index fell 51.26, down 2.80 from the previous month and 0.008 from the same period last year.

From a comprehensive point of view, this month's PMI composite index before and after the quarterly adjustment are higher than the 50 withered glory line, the lower reaches of the overall optimism to continue the peak season, but because the previous value is higher, the improvement is not particularly obvious. This month's composite production index was 51.81, down 15.10 from the previous month and 1.68 from the same period last year. This month, with the exception of the machinery and automobile industries, production in other industries has increased by different amplitudes. The construction industry is expected to be subject to some restrictions next month due to the rainy season. The new orders index was 52.16, down 12.98 from the previous month and up 2.15 from a year earlier. The overall new orders in the downstream industry have increased steadily, but with the gradual approach of the off-season of the manufacturing industry, new orders for machinery, automobiles and household appliances have become weaker, especially for cars.

The PMI index of iron and steel in May:

The construction industry PMI composite index 52.22, down 11.16 from the previous month, up 0.29 from the same period last year. After the quarterly adjustment, the composite index was 50.97, down 3.05 from the previous month and 0.09 from the same period last year. This month, the industry as a whole continued to improve, but the rate of improvement has narrowed, production orders have increased steadily, most of the construction sites are in a normal state of work, and some of the construction sites in East and Southwest China have started new projects this month. The industry as a whole in accordance with the demand for reasonable procurement, some construction sites are expected to be affected by Rain Water production constraints next month, there is a slightly lower inventory phenomenon. Given the greater impact of Rain Water next month, it is expected that next month's production situation will be difficult to maintain such an optimistic state this month.

The PMI composite index of the machinery industry was 49.09, down 3.83 from the previous month, up 0.20% from the same period last year. After the quarterly adjustment, the composite index was 51.50, down 0.30 from the previous month and up 0.19 from the same period last year. This month, the industry as a whole gradually weakened, the decline in orders for construction machinery is relatively large. Agricultural machinery due to 6, 7, 8 months will be in the off-season, the amount of contraction has been reflected in the latter part of this month, next month is expected to decline by a relatively large extent. Most enterprises maintain the conventional inventory operation, some enterprises because the project production needs to last a few months, generally according to the single purchase, this month just entered the procurement cycle, so the purchase volume has increased.

The PMI composite index of the automobile industry was 48.13, down 1.83 from the previous month and 0.63 from the same period last year. After the quarterly adjustment, the composite index was 52.73, up 0.61 from the previous month and down 1.10 from the same period last year. This month, the industry as a whole is about to gradually turn into the off-season, the situation of production orders is worse than last month, the decline in orders is more obvious. The contraction in orders was mainly due to the downturn in the domestic market, where sales of commercial vehicles were better than those of passenger vehicles. As the sales situation is not as good as expected, the pressure on commodity inventory is greater, at the same time, because the actual production consumption is less than the amount locked with the supplier according to the plan, the raw material inventory has also increased.

The PMI composite index of the shipbuilding industry was 53.14, down 0.11 from the previous month and 3.19 from the same period last year. After the quarter adjustment, the composite index was 52.08, up 1.53 from the previous month and down 3.29 from the same period last year. This month, the shipbuilding industry continued its good situation, with the composite index above 50 before and after the quarterly adjustment. Export orders, Ro / Ro ship orders and spare parts orders from South Korea have increased, domestic orders, accessories orders are relatively large, most enterprises reflect normal delivery. The industry as a whole to purchase according to a single, individual enterprises due to the need to customize the production of raw materials from ordering to receiving goods for a long time, the current consumption of the original inventory.

The PMI composite index of the home appliance industry is 50.05, up 0.24 from the previous month, and down 2.75% from the same period last year. After the quarterly adjustment, the composite index was 51.16, up 2.70 from the previous month and down 2.83 from the same period last year. This month, new orders in the industry as a whole have been reduced, foreign trade orders have dropped significantly due to trade frictions between China and the United States, and production has been relatively good, while unsatisfactory sales have led most enterprises to expect production to be weaker next month than in the previous month. Most manufacturers are slightly pessimistic about the demand situation next month and reduce their purchases while ensuring production, and there is a slight decline in the stock of raw materials.

The PMI composite index of the transportation infrastructure industry was 51.32, down 4.49 from the previous month and up 1.29% from the same period last year. After the quarter adjustment, the composite index was 51.52, down 0.46 from the previous month and up 1.03 from the same period last year. This month, the industry as a whole continued to improve, production orders have maintained a certain rate of growth. Because of the shortage of funds and unwilling to bear the risk of raw material price fluctuations, and usually according to a certain frequency of bidding to select suppliers, most enterprises maintain low inventory operation.