In June this year, the purchasing managers index (PMI) for the Chinese steel sector was at 37.4 percent, down by 5.0 percentage points as compared to May, down to the lowest level since December 2008 and remaining under the 50 percent threshold for the 15th consecutive months, as announced by the China Steel Logistics Committee (CSLC), which is part of the China Federation of Logistics and Purchasing (CFLP).
In addition, in June the production index for the steel sector decreased by 6.5 percentage points compared to the previous month to 34.2 percent. Meanwhile, in June the raw material inventory index for the sector stood at 42.5 percent, remaining unchanged month on month, while the sub-index for new orders saw a sharp decrease of 9.7 percentage points month on month to 27.9 percent.
In the given month, the finished steel inventory index increased to 55.1 percent, up 4.8 percentage points month on month and reaching its highest level in the past five months, while the index for new export orders increased to 50.7 percent, up 7.0 percentage points month on month, rising above 50 percent for the first time in seven months. In June, the purchase price index in the Chinese steel sector stood at 40.1 percent, indicating a decrease of 3.1 percentage points month on month.