Manufacturing Purchasing Managers' Index

India

While India's service sector continued to expand in September, it expanded at its slowest pace in six months because of falling inflation and new demand. India's services purchasing managers' index (PMI) fell sharply to 54.3 in September from 57.2 in August. India's composite purchasing managers' index, which includes manufacturing and services, fell to 55.1 in September from 58.2 in August. Delima, chief economist for the Indian market at Stemp Global, pointed out that although the expansion of India's service sector has slowed down, India's service sector has successfully overcome a number of disadvantages in recent months. India's service sector has had to raise terminal prices due to rising food and fuel prices, which has hit demand to some extent. On the international demand side, India's overseas demand for services fell to its lowest level since January in September due to a sluggish overseas economy.

China

In September, China's manufacturing purchasing managers' index (PMI) was 50.1 per cent, up 0.7 per cent from the previous month.With the continuous promotion of China's stable economic policy, the manufacturing industry maintained the momentum of recovery, and both supply and demand rebounded, basically facing good development. In addition, the impact of high-temperature weather has receded, manufacturing prosperity has warmed up, and PMI has returned to the range of expansion.

Figure 1 India & China Manufacturing Purchasing Managers' Index (PMI) Comparison in 2021-2022 (%)

Notes:

1. If PMI above 50 percent, it reflects the overall economy is expanding; if less than 50 percent, it reflects the overall economy is in recession.
2. Source: National Bureau of Statistics of People’s Republic of China.

Spot Market 

Market Overview

• Demand for automotive turns better, with other downstream lukewarm based on Global inflation, supply chain shortages, international situation

• Buyers maintain cautious buying attitudes, avoid building up inventories for polyols

• Unclear outlook expected after China Communist Party Congress meeting

India 

Compared with other countries in South Asia, India's economy is performing well, its growth performance is relatively strong, and it is rebounding from the sharp contraction in the first phase of the COVID-19 epidemic. Despite rising prices, inflation and weak rural demand, total sales of consumer goods remained stable from July to September. This trend will continue because of still strong consumer demand from the middle and upper classes.

India flexible slabstocks polyols market stabilize at $1450-1500/tonne on 14^th October

China 

China flexible slabstocks polyols market continues to decline on 14^th October. As PO prices hold steady, costs lend modest support to the flexible slabstocks polyols market. In terms of flexible foam downstream sectors, China’s automobile output and sales increased significantly year-on-year: In September, China produced and sold 2.672 million vehicles and 2.61 million vehicles, respectively, representing a year-on-year jump of 28.1% and 25.7% each. The demand growth in upholstered furniture industry was relatively small, but still better than the previous period. Receiving few orders, the manufacturers reduce prices to facilitate sale. The continued rise in prices for matching material TDI dampen demand. The prevailing offers in Shandong market stand at CNY 10,100-10,500/tonne EXW in bulk in cash. And those in East China and South China are CNY 10,100-10,300/tonne DEL in bulk in cash.

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