China Steel PMI Down 0.59 MoM to 50.11 in July

SHANGHAI, Jul 30 (SMM) - The PMI for downstream steel sectors stood at 50.11 points in July, down 0.59 point month on month but up 0.23 point year on year.

The seasonally-adjusted composite index came in at 51.36 points, down 0.64 point on the month and 0.29 point on the year.

The PMI for the transportation sector stood at 50.05 points in July, up 0.38 point on the month and 0.55 point on the year. The seasonally-adjusted composite index stood at 50.82 points, down 0.04 point on the month but up 0.16 point on the year. The progress at construction enterprises slowed in July, driven mainly by heavy rains and typhoon. The impact was most significant in north and south-east China, and some enterprises experienced short-term suspension of construction. Regardless of the impact of weather, the production pace of construction companies remained relatively stable. Shortage of funds affected the construction industry. Higher raw material prices have reduced stockpiling.

The PMI for the machinery sector stood at 50.25 points, down 2.51 points on the month and 0.36 points on the year. The seasonally-adjusted composite index came in at 52.47 points, down 2.61 points on the month and 1.03 points on the year. The overall performance of the machinery industry in July was stable. Domestic orders were poor, while export orders performed well. Raw material prices rose, depressing stockpiling and order taking. Logistics and its employment rate did not change.

The PMI for the automobile sector stood at 49.43 points, down 1.34 points month on month but up 0.4 point year on year. The seasonally-adjusted composite index came in at 53.1 points, up 0.11 point on the month but down 0.2 point on the year. The overall production pace of the automobile industry slowed down in July. Although new orders improved slightly, most of them were from new energy vehicles. The industry was significantly affected by the off-season, and some companies halted production amid high temperatures. Heavy rains in Henan and the typhoon in south-east China have caused delays in supplier delivery.

The PMI for the shipbuilding sector stood at 50.17 points, down 3.69 points month on month but up 0.27 point year on year. The seasonally-adjusted composite index came in at 51.47 points, down 0.42 point on a monthly basis, but up 0.21 point on a yearly basis. The shipbuilding industry's production enthusiasm weakened in July, and new orders at home and abroad dropped significantly.  Production was mainly for previous orders. Typhoon and the rainy season has led to short-term shutdowns in some areas. Shipyards were purchased on-demand with weaker industry prosperity index.

The PMI for the home appliances sector stood at 50.39 points, down 2.47 points month on month and 0.84 point year on year. The seasonally-adjusted composite index came in at 53.27 points, down 1.62 points on the month and 1.52 points on the year. The production enthusiasm in July weakened, while export orders remained brisk. Companies are optimistic about output and sales of refrigerators and air conditioners amid high temperatures. Overly high prices of raw materials have put some companies at a risk of loss. Logistics changed little.

The PMI for the transportation sector stood at 50.29 points in July, down 0.13 point on the month but up 0.21 point on the year. The seasonally-adjusted composite index stood at 49.73 points, down 0.59 point on the month and 0.06 point on the year. Construction of transport infrastructure slowed in July. Heavy rains in north China has depressed the infrastructure industry. The industry prosperity index was plain with limited growth. However, some companies have new construction plans in the next few months, boosting market optimism.