In December this year, the purchasing managers’ index (PMI) of China’s steel sector rose to 55.5 percent, up 6.3 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).
In December, China’s steel sector PMI reached a seven-month high and returned toexpansion, following a month-on-month decline of 3.5 percentage points to 49.2 percent in November.
In December, the new order index for China’s steel sector increased by 13.5 percentage points month on month to 60 percent, reaching a 22-month high. Meanwhile, in December the production index for China’s steel sector decreased by 9.3 percentage points month on month to 59.4 percent. The input price index for China’s steel sector in December was 68.9 percent up 2.2 percentage points month on month, while the finished steel inventory index also returned to expansion after contraction in the previous three months.
Market players state that increases in output and inventory may limit upward movements of steel prices. It is thought that steel prices in the Chinese domestic market may indicate a slight rising trend accompanied by fluctuations.