In October this year, the purchasing managers' index (PMI) of the steel sector in China’s Hebei Province decreased to 45.0 percent, down 5.7 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 declined by 2.3 percentage points month on month to 44.3 percent, as announced by the China Steel Logistics Committee (CSLC).
In October, the overall new order index for Hebei Province’s steel sector stood at 41.7 percent, down 11.9 percentage points compared to the previous month. The demand for steel in October was not good as good as expected, resulting in declines in the new order index.
In the given month, the new export order index in Hebei Province was at 38.1 percent, down 5.1 percentage points month on month. The downtrend in finished steel prices in the international market contributed to the big decreases in export prices and reduced the new export order index.
In the given month, the production index for Hebei Province’s steel sector was at 47.7 percent, down 7.0 percentage points month on month.
At the same time, the inventory index for finished steel in Hebei Province rose to 56.3 percent, up 8.8 percentage points month on month.
Meanwhile, the inventory index for raw materials in Hebei Province increased to 41.9 percent, up 3.5 percentage points month on month.
As for November, the large-scale outbreaks of the Covid-19 pandemic amid the more difficult situation in winter and the slack demand for steel will exert a negative impact on steel prices.