Resumption of production in East China

Judging from the current demand side changes, the message side is still greater than the actual performance. From the perspective of orientation, the resumption of production in East China has accelerated. Although there are still some sealed areas in North China, some areas have been unsealed, and the main theme in the later period is to return to work. However, at present, the supply side has not changed much, and most steel mills have not reported a clear production reduction, so the current pressure on the supply side is still too large, and the inventory pressure everywhere is the best embodiment.

Within the day, the National Bureau of statistics released PMI data. In May, the manufacturing purchasing managers’ index, non manufacturing business activity index and comprehensive PMI output index rose synchronously, 49.6%, 47.8% and 48.4% respectively. Although they were still below the critical point, they were significantly higher than the previous month by 2.2, 5.9 and 5.7 percentage points. Although the recent epidemic situation and changes in the international situation have had a great impact on the economic operation, with the effective overall epidemic prevention and control and economic and social development, China’s economic prosperity has improved compared with April. 

From the perspective of supply and demand change, both sides of the supply and demand have rebounded. The production index and the new order index were 49.7% and 48.2% respectively, up 5.3 and 5.6 percentage points over the previous month, indicating that the production and demand of the manufacturing industry have recovered to varying degrees, but the recovery momentum still needs to be enhanced. May is still affected by the epidemic, and the overall optimism is limited. The resumption of production in June will be further accelerated, and the data is expected to continue to improve.

Post time: Jun-02-2022