In February this year, the purchasing managers' index (PMI) of the steel sector in China’s Hebei Province increased to 48.8 percent, down 4.1 percentage points month on month, as announced by the Hebei Province Metallurgical Industry Association (MIA). In the given month, the trend of the PMI for the steel sector in Hebei Province was the same as that for the whole of China, which decreased by 3.2 percentage points month on month to 46.7 percent, as announced by the China Steel Logistics Committee (CSLC).
In February, the overall new order index for Hebei Province’s steel sector decreased to 46.3 percent, down 2.4 percentage points compared to the previous month.
In February, the production index for Hebei Province’s steel sector decreased by 15.9 percentage points, standing at 46.3 percent.
In the given month, the new export order index for Hebei Province’s steel sector declined by 5.0 percentage points month on month to 47.6 percent.
At the same time, the inventory index for finished steel in Hebei Province decreased by 6.8 percentage points month on month to 51.3 percent.
In February, the inventory index for raw materials in Hebei Province stood at 58.5 percent, up 9.7 percentage points month on month.
The ex-works price index for finished steel stood at 28.1 percent in February, down 10.9 percentage points month on month.
In February, the purchasing price index for raw materials stood at 42.7 percent, down 1.2 percentage points from January this year.
In early March, steelmakers in northern China have been required to halt production for the Two Sessions in Beijing, which will reduce outputs of steel and bolster steel prices. Steel prices in Hebei Province will likely rebound in March as downstream construction activities will gradually resume in the traditional peak season.