In July this year, the purchasing managers index (PMI) for the Chinese steel sector was at 41.0 percent, up by 3.6 percentage points as compared to June, but still remaining under the 50 percent threshold, as announced by the China Steel Logistics Committee (CSLC), which is part of the China Federation of Logistics and Purchasing (CFLP).
In addition, in July the production index for the steel sector increased by 6.8 percentage points compared to the previous month to 41 percent. Meanwhile, in July the raw material inventory index for the sector stood at 41.3 percent, down 1.2 percentage points month on month, while the sub-index for new orders saw an increase of 8.7 percentage points month on month to 36.6 percent.
In the given month, the finished steel inventory index decreased to 51.1 percent, down 4.0 percentage points month on month and remaining above the 50 percent threshold for the 19th consecutive month, while the index for new export orders increased to 56.1 percent, up 5.4 percentage points month on month, reaching its highest level since March 2013. In July, the purchase price index in the Chinese steel sector stood at 32.2 percent, indicating a decrease of 7.9 percentage points month on month.