In January this year, the purchasing managers index (PMI) for the Chinese steel sector was at 49.9 percent, 3.6 percentage points higher than that recorded in December last year, as announced by the China Steel Logistics Committee (CSLC), which is part of the China Federation of Logistics and Purchasing (CFLP).
Moreover, in January, the new order index stood at 50.2 percent, 4.8 percentage points higher than in December.
Affected by the implementation of the new steel export license policy, enterprises have slowed their processing of orders, exerting a negative impact on China’s steel exports. In January, the new export order index stood at 37.9 percent, 3.1 percentage points lower than December, indicating month-on-month declines for three consecutive months.
In January, the production index for the Chinese steel sector stood at 48.4 percent, 4.7 percentage points higher than in December.
In January, the finished steel inventory index stood at 52.2 percent, up 6.1 percentage points from December.
In January, the raw material purchase volume index stood at 57.9 percent, up 13.4 percentage points from December.
In January, the raw material purchase price index rose to 44.3 percent, up 13.7 percentage points from December.
As for February, the slowdown in production activities will lead to declines in raw material purchases. Since the Chinese New Year holiday (February 14-23) is approaching, finished steel and raw material prices in the Chinese domestic market will likely fluctuate within a limited range.
