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Stainless Steel Industry Index Fell Below The Line To Increase The Upward Pressure On Steel Prices

On January 1, the National Bureau of Statistics released that in December 2016, manufacturing PMI was 51.4%, slightly down 0.3 percentage points from the previous month, but still the second highest point in 2016, higher than the annual level of 1.1 percentage points. At the same time, in December 2016 China's non-manufacturing business activity index fell 0.2 percentage points last month, reaching 54.5%, also the second highest point during the year.

"Daily Economic News" reporter noted that in 2016, the manufacturing sector PMI showed a trend of low to high, starting from August for 5 consecutive months above the critical point.

In this regard, the Renmin University of China School of Finance Vice President Zhao Xijun told the "Daily Economic News" reporter, "2016 manufacturing PMI overall was low after the high trend for five consecutive months above the critical point,indicating that the manufacturing sector stabilized situation Will continue to consolidate, market confidence continues to increase, which will further enhance China's economic development for the better. "


It is noteworthy that the steel industry in December 2016 PMI index was 47.6%, down 3.4 percentage points from the previous month, after two consecutive months of recovery fell to 50% below the glorious line, the industry boom tends to slump. Analysis of the relevant index report that the late steel prices will face greater downward pressure.

The new order index is unchanged from last month

In December 2016, the manufacturing index and the new order index were higher than the critical points in the five sub-indices of the manufacturing PMI, the supplier delivery time index was at the critical point, the practitioner index and the raw material inventory index were below the critical point.
Among them, the new orders index was 53.2%, unchanged from the previous month, continuous higher than the critical point, indicating that the manufacturing market demand continues to maintain rapid growth. The number of employed persons was 48.9%, down by 0.3 percentage points from the previous month, which was below the critical point, indicating that the amount of labor employed in manufacturing enterprises continued to decrease and the decline was expanded. Raw material inventory index was 48.0%, down 0.4 percentage points from the previous month to continue in the contraction interval, indicating that the manufacturing sector continued to decline in major inventories of raw materials.
Founder Securities chief economist Ren Zeping analysis, the new order index was 53.2%, unchanged from the previous month, mainly by real estate investment, infrastructure PPP, corporate profits to improve manufacturing investment recovery and so on.

The decline in raw material inventories, Ren Zeping that this means that the strong demand for end products, finished products in short supply, finished goods inventory index fell faster than raw materials; the other hand, corporate replenishment cautious, new orders did not stimulate enterprises of raw materials and finished products A lot of cover.

National Bureau of Statistics Service Center survey senior economist Zhao Qinghe said, the production index was 53.3%, down 0.6 percentage points from the previous month, PMI is slightly down one of the main reasons.

Although the production index has declined, but still higher than the critical point. National Bureau of Statistics said that this shows that manufacturing production continued to expand the situation, growth has slowed.

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