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[SMM Survey] the final value of PMI composite index in stainless steel industry in April was 51.95% lower than that in March by 4.29%.
Apr 29,2020 16:33CST
The content below was translated by Tencent automatically for reference.

SMM4 29: April stainless steel industry PMI composite index final value of 51.95%, compared with the March final value down 4.29%, but still above the rise and fall line. Benefiting from the remarkable results of anti-epidemic in China, all walks of life have basically returned to normal, and the stainless steel industry has also continued to recover in terms of production and shipment this month.

The production index is 56.95%, the operating rate of stainless steel plant is increasing steadily, the production reduction only occurs in individual enterprises, and the output of most enterprises is still higher than that in March, according to the established scheduling.

New order index 50.67%, orders continue to recover, but most of them are caused by traders "reservoir" storage, to make up for the previous concentrated outbreak of demand delayed by the impact of the epidemic, downstream actual recovery growth rate is general;

Product inventory index 50%, although the market inventory has declined, but the steel mill has also borne a certain inventory pressure, the whole industry to see the warehouse problem is still deadlocked, it is worth affirming that, even without considering the centralized compensation of demand, in the current higher output, at least stainless steel will not accumulate, the inventory problem is more caused by the early accumulation;

The purchasing volume index 52.86%, also continues to be higher than the rise and fall line, in the stable production of the steel plant itself is still considerable, and the nickel raw material price is also out of the bottom, the replenishment rhythm of the steel mill is relatively normal;

The raw material inventory index is 50.29%, which is mainly related to the continuous increase of import supply in large stainless steel plants, while the performance of domestic nickel raw materials is relatively stable.

The PMI composite index of stainless steel industry in May was 52.97%, up 1.01% from the end of April.

For May, most stainless steel enterprises hold positive expectations in the general direction. On the one hand, domestic demand continues to release, no matter how strong the demand recovery is, it is an important support for the stable operation of stainless steel enterprises at present. On the other hand, the export market of stainless steel is relatively low, and the severity of the overseas epidemic has not been fully transmitted directly to China for the time being, and only a few steel mills say that their orders have been seriously affected.

Overall, due to the severity of the epidemic overseas, the market is not as good as expected, but it has not yet fallen into a pessimistic situation.

Production index 57.90%, except for a few conventional maintenance manufacturers, most steel mills said that production will continue to maintain a high level, but also do not rule out the case of poor orders to reduce production flexibly;

New order index 50.76%, although higher than the rise and fall line, but the current sales order pressure is heavy, the task of receiving orders in May can be reluctantly completed, the time node is still slower than the normal level in previous years;

The purchasing volume index is 54.76%. It is expected that the demand for nickel procurement will be released actively in the context of the high scheduling of steel mills and the improvement of recent profits.

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