In May, the province's steel industry PMI continued to exceed
Jun 05, 2018
Provincial Metallurgical Industry Association recently released data show that in May the province's steel industry PMI was 50.8%, an increase of 0.6 percentage points, two consecutive months above the line of honor.
Wang Dayong, vice president and secretary-general of the Provincial Metallurgical Industry Association, believes that the PMI index has remained in the expansion range for two consecutive months in May. Among the major sub-indexes, the new orders index has maintained a slight decrease in expansion, and the output index and raw material purchase price index Both rose to the expansion interval, the finished material inventory index and the raw material inventory index were both in the contraction range, and the ex-factory price index fell slightly to the contraction range. After comprehensively researching and appraising, the release of production capacity of the iron and steel enterprises in our province continued to pick up, orders remained good, inventory of steel plants continued to be low, and industry operations continued to improve.
Wang Dayong believes that the supply of the industry rose further in May, and the steel society stocks continued to decline. Under the high pressure of preventing the resumption of excess production capacity and the special supervision of “Dinggang Steel”, the domestic steel price has fluctuated at a high level and declined slightly. The price of fuel has risen slightly, especially as the price of coke has risen significantly, making the profits of steel mills narrow. Looking forward to June, the traditional demand for high temperature and rainy days will continue to tighten the supervising policy of the property market, and downstream demand is expected to be weak. Due to environmental protection factors, steel mills will increase inspection and maintenance, and industry supply will decline. In summary, the supply and demand of the steel market in June was weak, and considering that raw material costs would not provide significant support for steel prices, Sino-U.S. trade frictional uncertainty, and tightened quarter-financial assets, it is expected that steel prices will be passed in June. High pressure fluctuations.
