In April this year, the purchasing managers' index (PMI) of the steel sector in China’s Hebei Province decreased to 44.0 percent, down 4.2 percentage points month on month, as announced by the Hebei Province Metallurgical Industry Association (MIA). In the given month, the trend of the steel sector in Hebei Province was the same as that for the whole of China, which saw a decline in the PMI for the steel sector of 3.8 percentage point month on month to 40.5 percent, as announced by the China Steel Logistics Committee (CSLC).
In April, the overall new order index for Hebei Province’s steel sector stood at 43.2 percent, down two percentage points compared to the previous month.
In the given month, the new export order index in Hebei Province was at 45.5 percent, down 14.5 percentage points month on month.
In April, the production index for Hebei Province’s steel sector was at 45.5 percent, down 4.5 percentage points month on month. The Covid-19 restriction measures exerted a negative impact on the steel industry.
At the same time, the inventory index for finished steel in Hebei Province rose to 68.2 percent, up 3.9 percentage points month on month.
Meanwhile, the inventory index for raw materials in Hebei Province declined to 25 percent, down 20.2 percentage points month on month.
Moreover, the purchasing index for raw material in Hebei Province stood at 70.5 percent, down 10.5 percentage points month on month.
As for May, following the Covid-19 restriction measures, China has issued policies to boost economic development, which will stimulate consumption of steel, while demand for steel will gradually improve, and so the steel industry in Hebei Province may see a rebounding trend.