In December this year, the purchasing managers index (PMI) for the Chinese steel sector was at 46.3 percent, 1.7 percentage points lower than that recorded in November 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 December, the new order index stood at 45.4 percent, 3.5 percentage points lower than in November.
Overseas Christmas order deliveries have basically been completed, exerting a negative impact on the new export order index, which indicated declines of 6.1 percentage points to 41.1 percent in December.
In December, the production index for the Chinese steel sector stood at 43.7 percent, 2.3 percentage points lower than in November.
In December, the finished steel inventory index stood at 46.1 percent, down 3 percentage points from November.
In December, the raw material purchase volume index stood at 44.5 percent, down 1.8 percentage points from November.
In January, demand for steel may mainly remain slack due to the cold weather. However, since the year of 2026 will be the first year for the 15th Five-Year Plan, some projects supported by ultra-long-term special government bonds will be accelerating implementation, which will positively affect the demand for steel. Moreover, some key infrastructure projects are initiating preliminary preparations ahead of schedule to seize the construction window in the first quarter of 2026, which will also bolster steel demand.
