In March this year, the purchasing managers index (PMI) for the Chinese steel sector was at 48.4 percent, down 1.7 percentage points compared to February this year, as announced by the China Steel Logistics Committee (CSLC), which is part of the China Federation of Logistics and Purchasing (CFLP).
In March, the production index for the Chinese steel sector stood at 51.8 percent, 0.7 percentage points higher than that recorded in February.
In March, the new order index stood at 50.2 percent, 1.3 percentage points higher than that recorded in February, rising for four consecutive months on a month-on-month basis, which increased to the level above 50 percent for the first time over the past two years.
Moreover, in March, the index of raw material purchase price stood at 59.2 percent, 5.5 percentage points lower than February, hitting the lowest level over the past four months. Import iron ore prices and scrap prices have seen rises first while moved down later in March. The declines in raw material prices eased the steelmakers’ production costs.
At the same time, in March, the index of inventories of finished steel stood at 38.2 percent, 13.2 percentage points lower than February. Lower purchases contributed to slower growth in raw material prices.
As for April, demand for steel is anticipated to improve further, while within a limited range as demand has seen signs of lack of power since the end of March. The steel production may see slight rises, while the decreasing raw material prices may contribute to the improved profitability of steelmakers.