In May this year, the purchasing managers index (PMI) for the Chinese steel sector was at 46.4 percent, 4.2 percentage points lower than that recorded in April 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 May, the new order index stood at 46.4 percent, 4.6 percentage points lower than in April.
In May, the production index for the Chinese steel sector stood at 42.8 percent, 8.0 percentage points lower than in April.
In May, the raw material purchase price index stood at 29.7 percent, standing below 40 percent for seven consecutive months.
In May, the finished steel inventory index stood at 43.3 percent, 7.6 percentage points higher than in April.
As for June, demand for finished steel is expected to remain weak amid the uncertainties in economic and trade relations between China and the United States. The slack performance of the domestic real estate industry will continue to weaken the demand for steel. Meanwhile, the approaching rainy season will exert a negative impact on the steel market. It is thought that steel prices in China may edge down in June.