SHANGHAI, June 1 (SMM) – SMM data showed that the purchasing manager's index (PMI) for downstream nickel industries, including stainless steel, electroplating, alloy and battery, stood at 50.67 in May, up 0.76 point from April and returning to expansion. A reading above 50 indicates expansion.
Production sub-index performed steadily and returned to expansion
The composite sub-index for production in May was up 2.6 points from a month ago at 51.24. The production sub-index in the stainless steel sector rose 3.05 points and stood at 48.43. The production sub-index in the battery sector was up 2.76 points from a month ago at 51.05. Operating rates of nickel downstream industries in May basically recovered to the levels in March. Output of stainless steel plants returned to normal in May, increasing steadily, mainly due to the conversion of 300 series stainless steel brought about by the increase in profits. In the battery sector, the new orders of most battery enterprises resumed in May, and the overall demand improved. In addition, some enterprises resumed production from maintenance.
New orders sub-index in electroplating and alloy sector weakened
The overall sub-index for new orders across downstream nickel sectors fell 0.19 point on the month to 50.9 in May. The new orders sub-index in the stainless steel sector fell 0.27 point and came in at 51.05. The new orders sub-index in the battery sector rose 5.95 points to 55.95. However, the alloy and electroplating industries began to weaken significantly, mainly due to seasonal weakness. The growth rate of orders from domestic downstream enterprises began to slow down.
Raw materials inventory sub-index returned to expansion
The overall sub-index for raw materials inventories came in at 51.51 for May, 4.12 points higher from April. The sub-index for raw materials inventories in the stainless steel sector came in at 51.9. Domestic supply of ferronickel was relatively tight in May, and downstream stainless steel companies were more willing to stockpile, lifting up raw material inventories. However, battery and other sectors stockpiled moderately.
Finished goods inventory sub-index was also above 50
The overall sub-index for finished products stocks fell 0.7 point and stood at 50.15 in May, remaining in expansion. The sub-index for finished products stocks in the stainless steel sector came in at 50.14. End-user consumption still had support, leading to the slight increase of finished products stocks.
