In October this year, the purchasing managers index (PMI) for the Chinese steel sector was at 46.0 percent, up by 2.4 percentage points as compared to September, but 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 October the production index for the steel sector indicated a 3.7 percentage point month-on-month decrease to 42.2 percent. Meanwhile, in October the raw material inventory index for the sector increased to 43.7 percent with a 4.9 percentage point month-on-month increase, while the sub-index for new orders saw a rise of 9.4 percentage points month on month to 47.4 percent.
In the given month, the finished steel inventory index decreased to 53.1 percent, down 7.8 percentage points month on month, while the index for new export orders rose to 54.9 percent, up 3.2 percentage points month on month, reflecting the ongoing good performance of China's steel exports in October. In October, the purchase price index in the Chinese steel sector stood at 40.6 percent, seeing a significant rise of 16.9 percentage points month on month.