In May this year, the purchasing managers index (PMI) for the Chinese steel sector was at 35.2 percent, down 9.8 percentage points compared to April this year, as announced by the China Steel Logistics Committee (CSLC), which is part of the China Federation of Logistics and Purchasing (CFLP).
In May, the production index for the Chinese steel sector stood at 27.5 percent, 19.7 percentage points lower than that recorded in April.
In May, the new order index stood at 27.4 percent, 12.5 percentage points lower than that recorded in April, signaling the faster declining pace in the given month.
Moreover, in May, the index of raw material purchase price stood at 18.4 percent, 18.3 percentage points lower than April, hitting the lowest level over the past year. In May, prices of all raw materials indicated overall declining trends.
The demand for steel will likely continue to be slack in June due to the hot weather in summer. It is thought that finished steel prices may fluctuate within a limited range at low level in June.
$1 = RMB 7.0821
