In December last year, the purchasing managers index (PMI) of the Chinese steel sector stood at 47.7 percent, decreasing by 1.3 percentage points as compared to November and remaining below 50 for the fourth consecutive month, as announced on January 1 by the China Steel Logistics Committee (CSLC) which is part of the China Federation of Logistics and Purchasing (CFLP).
In addition, in December the production index for the steel sector indicated a 2.3 percentage point month-on-month decrease to a seven-month low of 47.1 percent. Meanwhile, in the given month, the sub-index for new orders declined by 2.9 percentage points month on month to 45.6 percent, constituting the fourth consecutive month-on month decline and reflecting the current sluggish demand situation. In December last year, the raw material inventory index rebounded to 54.7 percent, up 5.3 percentage points month on month, indicating the active restocking of raw material in the Chinese steel sector, while the new export order index was at 50.5 percent, down 5.5 percentage points month on month.