In October this year, the purchasing managers index (PMI) for the Chinese steel sector was at 44.3 percent, down 2.3 percentage points compared to September, as announced by the China Steel Logistics Committee (CSLC), which is part of the China Federation of Logistics and Purchasing (CFLP).
In October, the production index for the Chinese steel sector stood at 38.8 percent, 9.1 percentage points lower than that recorded in September. Steelmakers have been less willing to produce amid the slack demand from downstream users, while production restrictions due to environmental protection also negatively affected steelmakers’ production activities.
In October, the new order index stood at 43.4 percent, 1.9 percentage points lower than that recorded in September.
Meanwhile, in October, the new export index stood at 47.7 percent, 5.1 percentage points lower than in September.
At the same time, the index of raw material inventory stood at 41.7 percent, 4.7 percentage points higher than in September.
Moreover, in October, the index of raw material purchase price stood at 39.9 percent, 3.0 percentage points lower than in September.
As for November, demand for steel may be weaker than in October due to the end of the peak season, which will result in declines in steel prices.
$1 = RMB 7.2081
