The impact of weather weakened in August, and steel end-user sectors slightly recovered

The composite PMI index for steel end-user sectors in August 2024 was 50.03, up 1.40 MoM, down 0.12 YoY. Seasonally-adjusted, the composite index was 49.43, up 0.53 MoM, down 0.44 YoY.

Overall, the prosperity of downstream steel industries slightly improved this month. As the weather gradually cooled down in the latter part of the month, the construction and infrastructure companies accelerated their construction pace. Manufacturing companies that had implemented high-temperature holidays last month also resumed production this month, leading to an increase in the operating rate MoM. The accelerated production and construction pace slightly warmed up the demand for steel. This month's composite production index was 50.25, up 1.77 MoM, up 0.31 YoY. The new orders index was 49.76, up 2.30 MoM, down 0.46 YoY.