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China Steel PMI Down 2.3% MoM to 47.81 in August
Aug 31,2021 11:40CST
Source:SMM
The PMI for the steel downstream sectors stood at 47.81 in August, down 2.3 points month on month and 2.25 points year on year. The seasonally-adjusted composite index stood at 48.54, down 2.77 points on the month and 2.13 points on the year.

SHANGHAI, Aug 31 (SMM) - The PMI for the steel downstream sectors stood at 47.81 in August, down 2.3 points month on month and 2.25 points year on year.

The seasonally-adjusted composite index stood at 48.54, down 2.77 points on the month and 2.13 points on the year.

The PMI for the construction sector stood at 48.78, down 1.27 points on a monthly basis and 1.56 points on a yearly basis. The seasonally-adjusted composite index stood at 48.6, down 2.18 points month on month and 1.44 points year on year. Construction activities slowed down mainly due to typhoon and Delta variant, with construction being halted in Hunan and Jiangsu. Cash flows at some enterprises remained tight. High raw material prices and falling construction activities led to decline in purchases. Many regions tightened transport controls in order to contain the pandemic, resulting in longer transportation period.

The PMI for the machinery sector stood at 45.36, down 4.89 points on the month and 3.32 points on the year. The seasonally-adjusted composite index stood at 47.53, down 4.75 points on the month and 3.2 points on the year. Companies slowed down production due to weaker demand. Some companies were cautious about taking overseas orders due to high costs, while domestic orders did not improve. The purchases of raw materials continued to decline amid high raw material prices. Transportation efficiency was affected by the pandemic.

The PMI for the automobile sector stood at 49.45, up 0.02 point both on a monthly and yearly basis. The seasonally-adjusted composite index stood at 51.72, down 1.38 points on the month, but up 0.52 point on the year. Some car makers were on a summer break. The pandemic overseas caused export orders to fall. Delivery time in Jiangsu and Hunan was extended due to the pandemic.

The PMI for the shipbuilding sector stood at 50.43, up 0.26 point on the month and 0.13 point on the year. The seasonally-adjusted composite index stood at 50.32, down 1.16 points on the month, but up 0.19 point on the year. Shipbuilders increased production. Domestic orders performed well, while export orders fell slightly. The pandemic lowered transport efficiency.

The PMI for the home appliances sector stood at 46.67, down 3.72 points on the month and 6.73 points on the year. The seasonally-adjusted composite index stood at 48.53, down 4.71 points on the month and 6.95 points on the year. Home appliance producers were less interested in producing in the off-season and were cautious about taking export orders due to high transport cost. Demand for small household appliances, integrated stoves and refrigeration products was relatively better. Transportation period was extended as a result of the pandemic.

The PMI for the transport infrastructure sector stood at 47.65, down 2.64 points on a monthly basis and 3.24 points on a yearly basis. The seasonally-adjusted composite index came in at 47.75, down 1.85 points month on month and 3.03 points year on year. Construction in the transport infrastructure sector slowed down due to the pandemic and bad weather.  Some companies plan to speed up construction over the next few months. Excessively high prices of raw materials turned enterprises cautious about purchasing. Delivery time was extended.

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