In February this year, the purchasing managers index (PMI) for the Chinese steel sector stood at 39.9 percent, down by 0.8 percentage points as compared to January, falling to the lowest level since September 2012, as announced by the China Steel Logistics Committee (CSLC), which is part of the China Federation of Logistics and Purchasing (CFLP).
In addition, in February the production index for the steel sector indicated a 0.1 percentage point month-on-month decrease to 35.2 percent, declining for the fifth consecutive month on month-on-month basis. Meanwhile, in February the raw material inventory index for the sector decreased to 47 percent with a 2.6 percentage point month-on-month decrease, while the sub-index for new orders declined by 1.1 percentage points month on month to 32.4 percent, remaining below 50 for the sixth consecutive month.
Accordingly, in the given month, the finished steel inventory index rebounded to 63.3 percent, up 10.9 percentage points month on month, while the new export order index was at 52.3 percent, up 7.1 percentage points month on month. In February, the purchase price index in the Chinese steel sector stood at 31.5 percent, down 3.5 percentage points month on month.