In June this year, the purchasing managers index (PMI) for the Chinese steel sector was at 47.8 percent, 0.1 percentage point lower than that recorded in May, as announced by the China Steel Logistics Committee (CSLC), which is part of the China Federation of Logistics and Purchasing (CFLP).
In June, the new export order index stood at 46.8 percent, 1.8 percentage points lower than in May.
Moreover, in June, the new order index stood at 46.3 percent, 0.5 percentage points lower than in May.
In June, the production index for the Chinese steel sector stood at 49.3 percent, up 0.6 percentage points compared to May.
In June, the finished steel inventory index stood at 52.9 percent, up 9.9 percentage points from May.
Meanwhile, in June, the raw material purchase volume index stood at 50.3 percent, 2.3 percentage points higher than in May.
In June, the raw material inventory index declined to 48.3 percent, up 2.1 percentage points from May.
As for July, demand for steel will continue to slacken, though it may gain some support at relatively low price levels as construction activities will need to make some progress following the plum rainy season. Raw material prices may soften in July as steelmakers’ production activities may slow down during the traditional off-season. In July, finished steel prices are expected to fluctuate within a limited range at low levels.
