SHANGHAI, Nov 30 (SMM) - The finalised composite PMI for the alloy sector in November came in at 50.24, staying above the 50-point mark. Specifically, the production index was 51.52, the new order index was 50.40 and the index for supplier delivery stood at 49.96. SHFE nickel generally showed an upward trend in November, mainly boosted by the falling US CPI for October released on November 10. The slight decline in the index for supplier delivery was caused by the prolonged delivery time amid pandemic resurgence across the country. On the whole, the rigid demand for refined nickel from military alloy sector still existed. Although the orders for civilian applications from enterprises were reduced, its impact on the overall alloy sector was limited. Therefore, the PMI of the alloy sector in November is still above the 50-point mark.
The preliminary composite PMI for the alloy sector for December is 50.10. According to SMM research, the Spring Festival holidays of downstream enterprises of alloy sector are concentrated within one month before and after the Spring Festival. Therefore, it is expected that alloy orders may decline slightly during this period, but military orders will remain stable. In addition, the purchasing volume of raw materials in the alloy sector is estimated to decline slightly MoM in December.