The final reading of the composite PMI for the alloy sector was 50.05 in August, staying in the expansion range. Among them, the production index was 50.34, the purchase index was 50.26, the new order index was 50.34, and the supplier delivery time index was 50.

SHANGHAI, Sep 1 (SMM) - The final reading of the composite PMI for the alloy sector was 50.05 in August, staying in the expansion range. Among them, the production index was 50.34, the purchase index was 50.26, the new order index was 50.34, and the supplier delivery time index was 50. Due to the high temperature in August, Sichuan, Zhejiang, Jiangsu and other provinces issued power rationing policy. Although domestic refined nickel smelters were not affected by power rationing, SHFE nickel prices remained high in August as non-ferrous metals prices rose intensively. The demand of pure nickel from civil sector decreased significantly due to the high nickel prices, while military sector still had demand for Jinchuan nickel plate. In general, the orders of alloy factories decreased in August amid the wait-and-see sentiment of terminal enterprises. Therefore, the demand for pure nickel declined.

The initial reading of composite PMI for the alloy sector in September is 50.04. Due to the high nickel prices and insufficient nickel sulphate capacity of NHP and high-grade nickel matte production lines, the demand for nickel briquette from nickel sulphate sector rebounded. Therefore, the pure nickel inventory declined, which provided support for nickel prices. As such, the civil sector will have less demand for overseas pure nickel, hence the raw material procurement and order situation is unlikely to improve in September.