In January this year, the purchasing managers index (PMI) for the Chinese steel sector was at 43.0 percent, the lowest level in the past 11 months, down by 1.1 percentage points as compared to December 2014 and still remaining below the 50 percent threshold, as announced by the China Steel Logistics Committee (CSLC), which is part of the China Federation of Logistics and Purchasing (CFLP).
In addition, in January the production index for the steel sector indicated a 2.1 percentage point month-on-month decrease to 41.5 percent.
Meanwhile, in January the raw material inventory index for the sector increased to 51.3 percent with a 6.7 percentage point month-on-month increase, while the sub-index for new orders saw a decrease of 6.0 percentage points month on month to 34.2 percent.
In the given month, the finished steel inventory index decreased to 55.5 percent, down 0.7 percentage points month on month, while the index for new export orders decreased to 35.6 percent, down 6.0 percentage points month on month, reflecting the difficulties that Chinese steelmakers and steel traders faced in attracting orders from overseas markets, especially after the cancellation of the export tax rebate from January 1 this year. In January, the purchase price index in the Chinese steel sector stood at 23.5 percent, seeing a decline of 1.8 percentage points month on month, falling to the lowest level since September 2012.