In June this year, the purchasing managers index (PMI) for the Chinese steel sector stood at 48.3 percent, up by 1.9 percentage points as compared to May, still below the 50 percent threshold, as announced by the China Steel Logistics Committee (CSLC), which is part of the China Federation of Logistics and Purchasing (CFLP).
In addition, in June the production index for the steel sector indicated a 3.5 percentage point month-on-month increase to 48.9 percent. Meanwhile, in June the raw material inventory index for the sector decreased to 41.3 percent with a 1.9 percentage point month-on-month decrease, while the sub-index for new orders saw a significant rise by 4.9 percentage points month on month to 50.7 percent.
In the given month, the finished steel inventory index decreased to 56.4 percent, down 2.2 percentage points month on month, while the index for new export orders was at 55.7 percent, up 4.1 percentage points month on month. In June, the purchase price index in the Chinese steel sector stood at 27.5 percent, seeing a slight rise of 1.4 percentage points month on month, remaining below 50 percent for the sixth consecutive month.