domestic steel pmi ends three consecutive declines, report: overall market sentiment is now rising sharply
2024-10-03
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according to the latest report released by the china internet of things steel logistics professional committee, the pmi of the domestic steel industry in september 2024 was 49%, an increase of 8.6 percentage points month-on-month, ending the three consecutive months of month-on-month decline. the increase was relatively obvious, indicating that the steel industry has bottomed out and rebounded.
changes in sub-indexes show that demand in the steel market has improved, steel mill production has rebounded, raw material prices have slowed down, and steel prices have rebounded in shock. the report predicts that market demand will continue to rebound in october, steel production will continue to rise, and raw material and steel prices may both increase.
in fact, september is also the traditional peak consumption season for the steel industry. the report pointed out that the overall demand side of the market recovered in september. in the first half of the month, driven by peak season demand expectations and bargain hunting, domestic steel market demand rebounded. however, some areas in the south were affected by typhoons, and market transactions fluctuated. by the end of the month, the political bureau meeting of the cpc central committee injected strong impetus into the steel industry's expectations, and demand increased significantly. overall, demand in the steel market improved relatively well in september.
the rebound in demand will naturally increase the enthusiasm of steel mills for production. the report mentioned that companies that had voluntary maintenance and production reductions in the early stage have also resumed production, and steel mill production has rebounded. the production index was 54.8%, a month-on-month increase of 19.9 percentage points, ending the three consecutive months of operating in the contraction range, and the index hit a new high in the past four years.
overall, steel production activities showed an upward trend in september. at the same time, the willingness to produce has also strengthened, which has led to more frequent raw material procurement activities of steel mills. the purchase volume index was 51.5%, an increase of 10.9 percentage points month-on-month. the index returned to the expansion range after three years.
however, the report also mentioned that although the procurement of raw materials has picked up, the price of raw materials has not rebounded significantly. there were mixed gains and losses among various varieties, and the overall raw material prices fell back, but the rate of decline was slower than in the previous two months. among them, the iron ore market fell further, but the price decline continued to slow down and still did not fall below the $90 mark.
the report said that overall, raw material prices continued to show a downward trend in september, and steelmaking cost pressures on steel plants have eased.
steel prices are more volatile. the report mentioned that in september, the steel market experienced multiple factors such as a rebound in demand, the federal reserve's interest rate cut, and traders' speculation and bargain hunting. steel prices rebounded slightly, but soon fell back. towards the end of the month, the policy side sent a strong signal to the market. steel prices ended their early shocks and rose rapidly in the short term.
regarding the steel market conditions in october, the report predicts that steel market demand will continue to rebound. in october, peak season demand in the steel industry may continue. the federal reserve's interest rate cut and a new round of easing operations in the domestic money market are expected to bring more vitality to the commodity market. in particular, the politburo meeting at the end of september will have a profound impact on the industry. the overall market sentiment has heated up significantly as a result. in addition, domestic real estate policies are further relaxed, and the second-hand housing market is expected to pick up, which will play a certain supporting role in the overall real estate market in the future.
report analysis believes that overall, demand is expected to continue to rebound in october; at the same time, steel companies are more willing to produce, and steel production is expected to continue to rise in october.
the paper reporter he liping
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