PMI of steel industry in July: the growth rate of steel production fell down

In July 2020, the PMI index of China's steel industry was 49.2%, down 0.1% from the previous month, and the steel industry remained relatively stable.

The sub index shows that the growth rate of iron and steel production has slowed down, the market demand is still relatively tight, the prices of raw materials have maintained an upward trend, and the purchasing activities of enterprises have also declined, but the enterprises have good expectations for the future. According to the report, market demand may be released in August, steel production will keep rising, and steel prices may rise in shock.

In July, the flood disaster in southern China had an impact on the construction and production of some steel companies. The steel market demand was restrained to some extent, and the enterprises were still tight in receiving orders. The index of new orders was 47.7%, still below 50%. However, due to the continuous recovery of China's economy, the market's expectation for the future market is better, and the downward trend of steel demand has eased. The index of new orders has increased by 1.3 percentage points compared with the previous month.

In addition, driven by the economic restart in Europe and the United States in the epidemic, steel exports also improved. The index of new export orders was 42.8%, up 11.6% from the previous month, ending the trend of operating below 40% for four consecutive months.