In May this year, the purchasing managers index (PMI) for the Chinese steel sector was at 50.0 percent, down 2.1 percentage points as compared to April, as announced by the China Steel Logistics Committee (CSLC), which is part of the China Federation of Logistics and Purchasing (CFLP).
In addition, in May the production index for the steel sector increased by 1.5 percentage points compared to the previous month to 56.0 percent. Meanwhile, in May the sub-index for new orders in the steel sector saw a decline of 5.0 percentage points month on month to 46.7 percent.
In the given month, the finished steel inventory index increased to 38.3 percent, up 0.4 percentage points month on month, while the purchase price index of raw materials in the Chinese steel sector stood at 67.7 percent, indicating an increase of 8.2 percentage points month on month. Raw material prices have indicated an overall rising trend, with iron ore prices in particular rising sharply rises due to decreases in global iron ore supply against the backdrop of mine safety concerns in Brazil and the hurricane in Australia.