In August this year, the purchasing managers index (PMI) for the Chinese steel sector was at 44.7 percent, up by 3.7 percentage points as compared to July, but still remaining under 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 August the production index for the steel sector increased by 6.5 percentage points compared to the previous month to 47.5 percent. Meanwhile, in August the raw material inventory index for the sector stood at 42.1 percent, up 0.8 percentage points month on month, while the sub-index for new orders saw an increase of 3.3 percentage points month on month to 39.9 percent.
In the given month, the finished steel inventory index decreased to 49.8 percent, down 1.3 percentage points month on month and falling to its lowest level since January 2014, while the index for new export orders decreased to 54.5 percent, down 1.6 percentage points month on month, and the purchase price index in the Chinese steel sector stood at 48.2 percent, indicating an increase of 16.0 percentage points month on month, reaching its highest level since 2014.