[SMM exclusive] the stainless steel industry PMI composite index rose almost unchanged in July from the previous month.

SMM, Aug. 2 / PRNewswire-Asianet /-

The final value of PMI composite index of stainless steel industry in July was 48.90%, which was lower than the line of prosperity and decline, 4.62% higher than that in June and 2.95% higher than expected. The highest absolute value in July is still the purchase price index, which is 95.62%, an increase of 6.33% from 89.29% in June, and a huge gap from the expected 25.96%. The main reason is that nickel prices rose unexpectedly in July with the support of funds, and the increase of ferronickel, which is more commonly used in stainless steel plants, is relatively smaller than that of pure nickel. Matching the price increase of stainless steel can make the steel mill profit performance is OK, but whether can keep the high price in August will face the bigger challenge. The production index of 48.41% was 8.37% higher than that of the previous month, which was still lower than the line of prosperity and decline. The output of 300 series of individual manufacturers decreased during the month, and the purchasing volume index of 51.26% increased by 0.45% compared with the previous month, which was related to the increase of nickel-iron extracurricular production by individual manufacturers. The new order index is 47.60% up 8.37% from the previous month. After the passive rise in nickel prices for stainless steel, steel mills are still under great pressure to ship, but stocks have not been further accumulated. Stainless steel is currently at the tipping point of sawing from storage to storage.

The initial value of PMI composite index of stainless steel industry in August was 49.19%, which was lower than the line of prosperity and decline, and increased by 0.78% compared with July. Most operators believe that August will still be a month when stainless steel will face greater shipping pressure. In the traditional off-season, the downstream of stainless steel will be purchased on demand, but the supply of goods on the market is still abundant, and the market is difficult to say prosperity. However, with the approach of the traditional autumn peak season, there are still some hopes for the later downstream consumption. In addition, although the impact of high-priced raw materials purchased by stainless steel plants on costs will gradually show in July, if some of the increases in the previous period can be maintained, stainless steel mills still have a small profit margin. At present, it seems that steel mills have not taken the initiative to significantly reduce production. The initial production index for August was 49.10%. In terms of the purchase price index, the initial value in August is 54.66%. Market participants have some differences under the price point at the end of the month. Large stainless steel plants have strong demand for ferronickel and are basically more active in purchasing. And the orders for nickel iron plants in August have basically been finalized in early July, and the expected prices are still supported, but at the same time, some operators expect this wave of bulls to come to an end, if their funds gradually withdraw. Nickel prices are likely to fall back from their highs in August.

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