In September this year, the purchasing managers index (PMI) for the Chinese steel sector was at 45.0 percent, up 3.2 percentage points as compared to August, as announced by the China Steel Logistics Committee (CSLC), which is part of the China Federation of Logistics and Purchasing (CFLP).
In September, the production index for the Chinese steel sector stood at 46 percent, 2.0 percentage points higher than that recorded in August, while still at a relatively low level, meaning that output continued to decline but at a slower pace.
Meanwhile, in September the sub-index for new orders in the steel sector saw a rise of 7.4 percentage points month on month to 39.0 percent. Moreover, the new export orders index indicated a rise of 7.7 percentage points month on month to 39.5 percent, below 40 percent for three consecutive months.
At the same time, the purchase price index of raw materials in the Chinese steel sector rose by 3.9 percentage points month on month to 51.6 percent amid increasing prices of raw materials, of coke and coking coal in particular.
As for October, steel prices will likely move up amid ongoing production restrictions aimed at reducing energy consumption, while raw material prices may also rise.
$1 = RMB 6.4854