Data: The PMI for home appliances sector stood at 50.89 in June, up 0.40 points month on month, but down 0.72 points year on year. The seasonally-adjusted composite index stood at 50.07, up 0.05 points on the month but down 0.87 points on the year. The index for production stood at 52.72, up 0.95 points on a monthly basis and 1.71 points on a yearly basis. The index for new orders rose 0.39 points month-on-month but fell 3.95 points year-on-year to 50.42. Home appliances sector kept 30.40 days of raw material inventories on average in June, up 0.05 day MoM. (The number of days of raw material inventories is for reference only as the survey sample may have changed.)
Summary: This month, the home appliances sector as a whole continued to improve. The production pace was relatively fast, and some enterprises continued to increase the production schedule of refrigeration products. New orders also increased on a monthly basis. Driven by the influence of dealer activities and consumption policies in various regions, downstream demand has picked up this month. With the increase in orders and the decline in raw material prices, the purchase of raw materials by home appliance enterprises has also increased.
SMM Survey:
A medium-sized home appliance enterprise in East China: This month, material procurement increased year-on-year, with ample inventory stockpiled to cope with the decline in steel prices. In terms of production, June reached full capacity, with both month-on-month and year-on-year production schedules showing an increase, due to a positive outlook for both export and domestic trade demand, as well as the arrival of the summer peak season for demand. The production of cold-chain refrigerators, air conditioners, and other home appliances has increased, with the main product being the freezer. Regarding exports, we are monitoring the impact of exchange rate fluctuations on profits, but the demand volume remains relatively stable. Compared to the previous month, domestic trade has improved, with June featuring the 618 promotional event ( 618 is an online discount festival in China, held annually on June 18th, and features various promotional activities and sales events on e-commerce platforms. ) and a positive demand outlook expected for July-August, the business outlook for the upcoming 2-3 months is optimistic.
A small home appliance enterprise in South China: This month, production operated normally, with an improvement in order conditions. Purchase volumes remained stable, showing no significant increase.
A Large home appliance enterprise in Southwest China: This month, air conditioner production scheduling increased, while normal operations continued at the two washing machine production bases. June's production scheduling remained stable, following a proactive increase in May. Refrigerators were manufactured by Changhong Meiling, and the Sichuan base primarily focused on black appliances(Black appliances refer to a category of home appliances, this category includes entertainment products such as DVD players, color TVs, audio systems, game consoles, camcorders, cameras, video game machines, home theaters, telephones, and answering machines. ), leading to relatively weaker product sales. Sales volume increased month-on-month, mainly driven by online promotions. With the decline in steel prices, purchases were made according to order volume, without advance procurement of materials for the upcoming months, due to uncertainties surrounding market demand continuity.
