In May, the purchasing managers' index (PMI) of the steel sector in China’s Hebei Province rose to 50.2 percent, down 0.2 percentage points month on month, as announced by the Hebei Province Metallurgical Industry Association.
In May, the overall new order index for Hebei Province’s steel sector stood at 49.1 percent, down 4.4 percentage points compared to the previous month. In the given month, the production index for Hebei Province’s steel sector was at 52.8 percent, down 1.7 percentage points month on month, while the inventory index for finished steel in Hebei Province increased to 50.0 percent, increasing by 3.8 percentage points month on month. In addition, the raw material inventory index for the steel sector in Hebei decreased to 45.4 percent, down.9 percentage points month on month.
The association estimated that the finished steel prices in June will inevitably see a downward correction due to slack demand in traditional offseason and comparatively loosening supply.