In October this year, the purchasing managers index (PMI) for the Chinese steel sector was at 49.2 percent, 1.5 percentage points higher than that recorded in September 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 October, the new order index stood at 47.6 percent, 2.4 percentage points higher than in September.
The improved demand from overseas markets in October exerted a positive impact on the new export order index, which stood at 54.3 percent, 7.4 percentage points higher than in September, reaching its highest level in 20 months.
In October, the production index for the Chinese steel sector stood at 49.8 percent, 4.1 percentage points higher than in September.
In October, the finished steel inventory index stood at 51.7 percent, down 2.3 percentage points from September.
In October, the raw material purchase volume index stood at 48.8 percent, up 0.3 percentage points from September.
Demand for finished steel will improve in the first part of November, while it is expected to weaken in the latter part of the month as the weather gets colder. At the same time, production activities will slow down, reducing the outputs of finished steel and bolstering prices to a certain degree. It is expected that finished steel prices may edge up first in November before softening later in the month.