In April this year, the purchasing managers index (PMI) for the Chinese steel sector stood at 52.6 percent, surging by 8.4 percentage points as compared to March and exceeding the 50 percent threshold for the first time since September 2013, as announced by the China Steel Logistics Committee (CSLC), which is part of the China Federation of Logistics and Purchasing (CFLP).
In addition, in April the production index for the steel sector indicated a 13.3 percentage point month-on-month increase to 53.0 percent. Meanwhile, in April the raw material inventory index for the sector increased to 46.0 percent with a 5.2 percentage point month-on-month increase, while the sub-index for new orders continued to see a significant recovery, rising by 11.7 percentage points month on month to 57.8 percent, as downstream industries witnessed significant improvement in demand amid the peak season for activity in the automotive, home appliance, machinery and construction sectors.
In the given month, the finished steel inventory index increased to 54.0 percent, up 0.8 percentage points month on month, while the index for new export orders was at 52.1 percent, up 3.5 percentage points month on month. In April, the purchase price index in the Chinese steel sector stood at 46.1 percent, up 17.3 percentage points month on month.