China Steel PMI improved in September amid high season and production rush

SHANGHAI, Sep 29 (SMM) — The purchasing managers index (PMI) for steel stood at 52.56 points in September, up 2.50 points from August but down 0.31 point on the year. The reading came in at 49.20 points after seasonal adjustments, down 1.04 points on the month and 0.01 point on the year.

China Steel PMI

Data source: SMM

The China domestic market was more bearish compared to last year. However, some of the downstream sectors were boosted by the high season and production rush. The index for production stood at 55.83 points, up 5.89 point on the month and 4.35 points on the year. The index for new orders stood at 53.46 points, 3.67 points higher than August but 4.56 points lower than a year ago.

The PMI for the construction sector stood at 52.58 points in September, up 2.24 points on the month and 0.14 point on the year. Seasonally adjusted, the composite index stood at 49.20 points, down 0.75 point on the month but 0.32 point on the year.  Construction companies were increasing production on the back of peak season in September.

Performance of the machinery sector improved in September with new infrastructures construction supporting domestic demand. The machinery PMI rose 3.55 points on the month but was down 0.22 point on the year to 52.23 in September.

The PMI for the automobile sector stood at 54.23 points in September, up 4.8 points month on month but down 3.31 points year on year. Overall production improved significantly from August, and carmakers held optimistic outlook on the market over the next three months.

The PMI for the shipbuilding sector declined 0.33 point month on month and 3.15 points year on year to 49.97 points in September. Shipbuilders kept raw material stocks largely stable.

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