In July this year, the purchasing managers index (PMI) for the Chinese steel sector was at 42.5 percent, 5.3 percentage points lower than that recorded in June 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 July, the new order index stood at 40.3 percent, 9.1 percentage points lower than in June.
In July, the index of finished steel inventory stood at 54.4 percent, 7.0 percentage points higher than in June, rising for the third consecutive month.
In the given month, the production index for the Chinese steel sector stood at 38.5 percent, 7.4 percentage points lower than in June, signaling that steel producers have been unwilling to produce amid the continuous rises in inventory levels and the sluggish demand from downstream users in the traditional offseason.
In July, the index of raw material purchase prices stood at 20.8 percent, 17.8 percentage points lower than in June, falling sharply for the second consecutive month.
As for August, the demand for steel is anticipated to remain slack, which will result in declining production activities on the steelmakers’ side, while raw material prices may edge down further, and finished steel prices may fluctuate within a limited range in the first week of the month.