In June this year, the purchasing managers index (PMI) for the Chinese steel sector was at 45.9 percent, 0.5 percentage points lower than that recorded in May 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 June, the new order index stood at 45.6 percent, 0.8 percentage points lower than in May.
In June, the production index for the Chinese steel sector stood at 43.5 percent, 0.7 percentage points higher than in May.
In June, the raw material purchase price index stood at 25.6 percent, down 4.1 percentage points compared to May, standing below 40 percent for eight consecutive months.
In June, the finished steel inventory index stood at 46.8 percent, 3.5 percentage points higher than in May.
In June, the raw material purchase volume index stood at 49.9 percent, 0.3 percentage points higher than in May.
As for July, demand for finished steel will remain sluggish due to the peak period for hot temperatures and heavy rains in China, while the extreme weather in southern China will reduce the effective operating hours of construction sites, causing rebar and wire rod purchases to decline. It is thought that finished steel prices may edge down in the traditional off-season in July.