In July this year, the purchasing managers index (PMI) for the Chinese steel sector stood at 48.6 percent, up by 0.3 percentage points as compared to June, 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 July the production index for the steel sector indicated a 1.8 percentage point month-on-month increase to 50.7 percent. Meanwhile, in July the raw material inventory index for the sector rose by 1.6 percentage points month on month to 42.9 percent, while the sub-index for new orders saw a decline of 1.6 percentage points month on month to 49.1 percent.
In the given month, the finished steel inventory index decreased to 55.1 percent, down 1.3 percentage points month on month, while the index for new export orders was at 48.2 percent, down 7.5 percentage points month on month, indicating that China's steel exports might move to slower growth in the coming period after the rapid rises seen in the first half of the year. In July, the purchase price index in the Chinese steel sector stood at 42.3 percent, seeing a strong rise of 14.8 percentage points month on month.