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The PMI of Hebei iron and steel industry in August was 52.5%. The profit of the industry increased significantly.
Sep 3,2020 10:02CST
translation
Source:Hebei Metallurgical Industry Association
The content below was translated by Tencent automatically for reference.

SMM News: in August 2020, the purchasing manager index ((PMI)) of the iron and steel industry in Hebei Province was 52.5%, up 0.7% from the previous month, and was above the rise and fall line for four consecutive months, and the profits of the industry increased significantly.

In August, the index of new orders was 52.1%, up 0.3 percentage points from the previous month. The new orders index has remained in the expansion range for four consecutive months, indicating that the effect of the policy of expanding domestic demand continues to show, and market demand is picking up. The index of new export orders was 34.6%, up 2.5 percentage points from the previous month. The output index was 56.0%, up 2.0 percentage points from the previous month. In August, Rain Water's influence on construction enterprises was weaker than that in the previous period, the downstream demand increased, the relationship between supply and demand in the steel market was further improved, and the production of steel mills was accelerated. The inventory index of finished materials is 50.0%, which is flat from the previous month. The inventory index of raw materials is 48.0%, which is flat from the previous month. The purchasing price index of raw materials was 78.0%, up 11.0 percentage points from the previous month. Iron ore prices have risen continuously since May, especially in August, when the price of imported iron ore rose sharply, resulting in a shift in the cost center of gravity of steelmakers and a squeeze on their profits.

Wang Dayong, vice president and secretary general of Hebei Metallurgical Industry Association, believes that the PMI index in August was 52.5%, which was in the expansion range for four consecutive months. Among the main sub-indices, compared with the previous month, the raw material purchase price index, raw material purchase volume index, output index and finished material ex-factory price index increased, while the new order index rose slightly. Raw material inventory index and finished material inventory index are the same as last month. The index of new export orders rebounded slightly after two consecutive months of decline in June and July. The backlog index fell.

According to a comprehensive study, in August, the production growth rate of iron and steel enterprises in Hebei Province increased steadily, downstream orders continued to grow, the cost support was strong, and the overall operation of the industry maintained a high and stable operation trend. A new development pattern in which the domestic great cycle is the main body and the domestic and international double cycles promote each other is gradually taking shape. Hebei iron and steel industry continues to maintain a high rate of growth, steel downstream demand continues to maintain a high level, showing a certain degree of toughness. At the same time, due to the high support of raw material prices and the continuous strengthening of air quality control measures in Tangshan area, domestic steel prices will remain at a certain high level.

It is suggested that under the premise of stable operation, the iron and steel industry should strictly implement the strategy of ecological civilization construction and high-quality development, actively open up new domestic and international markets and develop new customers in the market under the condition of stable industrial chain and supply chain. develop new products for new users, innovate in development, develop in innovation, collaborative innovation, collaborative development, collaborative manufacturing, collaborative market; Continue to play the role of the main body of the enterprise market, continue to stimulate the enterprise market vitality, continue to release the enterprise market power, and take the initiative to develop the steel market for steel.

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