Steel downstream activity grows slower in May

Published: May 30, 2019 14:40 (GMT+8)

Save

PMI slipped 7.86 from Apr to 51.1 in May

SHANGHAI, May 30 (SMM) – Activity across major steel downstream industries in China continued to expand in May, but at a slower pace due to a high base of comparison in April.

Construction remained in a high season, while manufacturing showed signs of weakening as the machinery and automobile sectors contracted.

The SMM purchasing managers’ index (PMI) for China’s construction, machinery, automobile, shipbuilding, home appliance and transportation sectors, major consumers of steel, slipped 7.86 from April to 51.1 in May. It remained above the 50-mark that separates expansion from contraction, for a third straight month. May’s reading inched up 0.13 year on year.

After seasonal adjustment, the composite PMI came in at 51.26, down 2.8 from a month ago and 0.08 from a year ago.

Production this month grew across steel downstream sectors, except for machinery and automobiles, with the sub-index standing at 51.81, down 15.1 from April and 1.68 from May 2018. Rainfall is expected to impact construction and transportation next month.

The sub-index for new orders slipped 12.98 to 52.16 in May, standing 2.15 higher than a year earlier. Overall new orders increased this month, but orders for machineries, automobiles and home appliances shrank as a low season approaches. New orders sub-index for the automobile sector fell 6.1 to 44.8 in May.

PMI Steel

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

17 hours ago

Asante gains more time to arrange US$100 million for Ghana mines

[SMM Gold Flash] On 30th September 2026, Asante Gold announced that its senior lenders, stream purchaser and hedge counterparty had agreed to extend its deadline for securing at least US$100 million in new funding to 31 October. The deadline for a cost-to-complete certificate moved to 31 March 2027. Asante said it had agreed funding terms with Fujairah Holding, which requested more time for internal approvals. Final approval and signed funding agreements remain outstanding. The extensions give Asante more time to address financing requirements affecting its operating Bibiani and Chirano gold mines in Ghana. They do not resolve the funding requirement: completion of the proposed package is the next material milestone.

17 hours ago

Early construction begins at Marathon copper–palladium project

[SMM PGM Flash] Generation Mining has begun early construction at its Marathon copper–palladium project in northwestern Ontario. Work started after the company posted a C$6.5 million bond covering construction-phase site rehabilitation. Its wider early-works programme is planned to include access-road upgrades, water-management structures and temporary power through late 2026 and into 2027. The start moves a potential North American palladium and platinum source into physical site work. Generation’s feasibility study estimates about 2.16 million payable ounces of palladium and 488,000 ounces of platinum over a 13-year mine life; these are forecasts, not production. The company also expects to make about C$30 million in initial equipment payments, subject to final contracts and approvals.

17 hours ago

Oct 02, 2026 15:49 (GMT+8)

Ghana draft bill proposes state special share and shorter mining leases

[SMM Gold Flash] A draft mining bill reviewed by Reuters on 30 September would let Ghana’s mines minister require companies to issue the state a free special share with consent rights over major transactions. It would retain the existing 10% free-carried state interest and limit mining leases to 15 years or the projected mine life, whichever is shorter. The draft would also allow future rules requiring local processing and restricting exports of unprocessed concentrates. None of these proposals has been enacted; Reuters did not establish when the draft was prepared. For Ghana’s gold miners, the proposed rights and shorter leases could affect financing, valuations and renewal decisions. Under the draft, existing rights holders seeking renewal would receive priority consideration for equivalent licences. Mining companies expect further consultation before parliamentary debate, Reuters reported. The final wording and timing remain uncertain.

Oct 02, 2026 15:49 (GMT+8)