In November this year, the purchasing managers index (PMI) for the Chinese steel sector was at 48.2 percent, 2.6 percentage points higher compared to October this year, as announced by the China Steel Logistics Committee (CSLC), which is part of the China Federation of Logistics and Purchasing (CFLP).
Moreover, in November, the new order index stood at 49.7 percent, 4.7 percentage points higher than that recorded in October, increasing for the third consecutive month.
In the given month, the production index for the Chinese steel sector stood at 48 percent, 4.6 percentage points higher than in October, shifting from a month-on-month decline to an increase.
In November, the index of raw material purchase prices stood at 77 percent, 17.7 percentage points higher than in October, seeing a big month-on-month rise.
Steelmakers expect that production will decrease in December and so they have reduced their inventory levels of raw materials in advance.
As for December, demand for steel will likely slacken, which will exert a negative impact on steel prices. However, US-China relations appear likely to improve after the meeting of the two sides in the US, which will bolster market sentiment. It is expected that steel prices in the Chinese domestic market will edge down in December.