Home / Metal News / The PMI of the domestic aluminum processing industry recorded 41.7% in May

The PMI of the domestic aluminum processing industry recorded 41.7% in May

iconJun 3, 2024 16:26
Source:SMM
The comprehensive PMI index for the domestic aluminum processing industry in May 2024 recorded 41.7%, remaining in the contraction territory.

The comprehensive PMI index for the domestic aluminum processing industry in May 2024 recorded 41.7%, remaining in the contraction territory. The inhibitory effect of high aluminum prices on downstream demand has become apparent, with the production index recording 43.3% and the new orders index recording 28%. Recent increases in overseas trade barriers affected some companies' new export orders, with the new export orders index recording 40.5%. Meanwhile, under high aluminum prices, the end-users' order pick-up speed slightly slowed down, with the product inventory index recording 54.5%. In May, except for the PMI index of the aluminum wire and cable sector being above 50%, other sectors were all in contraction territory.

In May, aluminum prices continued to fluctuate at high levels. The willingness to place orders in downstream end-user sectors was poor, and some aluminum processing enterprises experienced losses on previous orders. This led to a decline in production enthusiasm, resulting in a less-than-expected peak season. The NEVs and photovoltaic industries continued to reduce costs and increase efficiency, with low willingness to accept high aluminum semis prices. The industry saw a trend of replacing aluminum with steel and magnesium, affecting orders in aluminum processing industry. The PMI of aluminum processing enterprises fell below 50% in May. In June, the sentiment in end-user sectors remained cautious, with limited order growth. By late June, the aluminum processing industry will begin transitioning into the off-season, and overseas trade barriers caused further disruptions. As a result, the increase in aluminum semis export orders was limited. Based on the industry orders and production schedules, SMM expects the PMI to remain below 50% in June.

Market forecast
Market review
Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market exchanges, and relying on SMM's internal database model, for reference only and do not constitute decision-making recommendations.

For queries, please contact Lemon Zhao at lemonzhao@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

Related news