Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

China’s manufacturing activity expanded in September, with the country’s manufacturing Purchasing Manager’s Index (PMI) inching up to 51.5 from 51 in August, according to the country’s National Bureau of Statistics.


The climb indicates that the expansion is the result of a maintained recovery in supply and demand in manufacturing as COVID-19 fears gradually fade from the country.  


Most of the manufacturing industries have increased their production before the week-long Golden Week holidays at the beginning of October, with factory activities witnessing a push on increasing orders in September. The non-manufacturing PMI also rose to 55.9 in September from 55.2 in the prior month.


In September, the sub-index for production stood at 54, up 0.5 points from August, while the new orders sub-index rose by 0.8 points to 52.8 during the same period.


October forecast remains uncertain 

Manufacturing activities could slow down in October as the government announces winter production cuts for steel mills in the seven provinces of Beijing, Tianjin, Hebei, Shandong, Henan, Shanxi, and Shaanxi next month. Moreover, uncertainties about the pandemic in other countries and the US Presidential election could keep October production slower than September.

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