In August this year, the purchasing managers index (PMI) for the Chinese steel sector was at 49.8 percent, 0.7 percentage points lower than that recorded in July 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 August, the new order index stood at 49.7 percent, 2.2 percentage points lower than in July.
In August, the production index for the Chinese steel sector stood at 48.0 percent, 3.9 percentage points lower than in July.
In the given month, the raw material purchase price index stood at 53.3 percent, up 1.8 percentage points compared to July.
In the same month, the finished steel inventory index stood at 53 percent, 7 percentage points higher than in July, hitting the highest level over the past nine months.
In August, the raw material purchase volume index stood at 53.5 percent, 2.9 percentage points higher than in July, standing above 50 points for two consecutive months, also creating the new high in 2025.
As for September, demand for finished steel will gradually improve amid the traditional peak season for vehicle and home appliance industries. However, the continuous increasing raw material prices will shrink the profitability on steelmakers’ side. At the same time, the military parade in September will reduce the production of finished steel, which will bolster steel prices to a certain degree. It is expected that finished steel prices may edge up in September.