In October this year, the purchasing managers index (PMI) of China’s steel sector was 52.7 percent, up 9.2 percentage points compared to the previous month, as announced by the China Steel Logistics Committee (CSLC) which is part of the China Federation of Logistics and Purchasing (CFLP). Accordingly, for the first time since April this year, the index exceeded the watershed of 50 percent in October, indicating an expansion in activity levels.
October is traditionally a strong period for steel consumption in China. Increasing investment in infrastructure construction in the given month boosted steel demand in China. In October, the new order index for China’s steel sector increased by 13.8 percentage points month on month to 55.4 percent. Meanwhile, in October the production index for China’s steel sector increased by 17.4 percentage points month on month to 57.1 percent.
Also in October, the purchase volume index for China’s steel sector was 53.5 percent, indicating a month-on-month increase of 17 percentage points, while the raw material inventory index stood at 46.8 percent, up 5.8 percentage points compared to September.