In March this year, the purchasing managers index (PMI) for the Chinese steel sector stood at 44.2 percent, up by 4.3 percentage points as compared to February, indicating the first rise after three consecutive month-on-month declines, as announced by the China Steel Logistics Committee (CSLC), which is part of the China Federation of Logistics and Purchasing (CFLP). However, the steel sector PMI remained below the 50 percent threshold for the seventh consecutive month, reflecting the ongoing sluggishness in China's steel industry.
In addition, in March the production index for the steel sector indicated a 4.5 percentage point month-on-month increase to 39.7 percent. Meanwhile, in March the raw material inventory index for the sector decreased to 40.8 percent with a 6.2 percentage point month-on-month decrease, while the sub-index for new orders saw a significant recovery by 13.7 percentage points month on month to 46.1 percent, indicating that demand from downstream industries has improved with the approach of the peak season for consumption.
In the given month, the finished steel inventory index declined to 53.2 percent, down 10.1 percentage points month on month, while the index for new export orders was at 48.6 percent, down 3.7 percentage points month on month. In March, the purchase price index in the Chinese steel sector stood at 28.8 percent, down 2.7 percentage points month on month, dropping to its lowest level since October 2012.