Steel sector PMI in Hebei decreases to 46.9 percent in Jan

Tuesday, 02 February 2021 12:20:33 (GMT+3)   |   Shanghai

In January this year, the purchasing managers' index (PMI) of the steel sector in China’s Hebei Province fell to 46.9 percent, down 5.0 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 PMI in Hebei Province was the same compared to that for the whole of China, which declined by 1.5 percentage points month on month to 44.3 percent.

In January, the overall new order index for Hebei Province’s steel sector stood at 47.5 percent, down 9.6 percentage points compared to the previous month. The worsening of the Covid-19 pandemic in Hebei Province in the given month exerted a negative impact on transportation and construction, which resulted in the decline in the new order index. 

The new export order index stood at 47.5 percent, up 2.0 percentage points amid the improvement in demand for steel in overseas markets. 

In the given month, the production index for Hebei Province’s steel sector was at 41.5 percent, down 8.5 percentage points month on month. Due to the negative impact of Covid-19, some steel mills in Hebei province reduced production in the given month. 

At the same time, the inventory index for finished steel in Hebei Province increased to 55.0 percent, up 5.4 percentage points month on month.

In addition, the raw material inventory index for the steel sector in Hebei decreased to 39.1 percent, down 3.4 percentage points month on month.

Due to the Chinese New Year holiday in February, most downstream users will halt production, and so the situation in the steel industry in Hebei Province is expected to be stable amid weak activities.  

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