Steel sector PMI in Hebei decreases to 47.3 percent in August

Thursday, 02 September 2021 14:21:54 (GMT+3)   |   Shanghai
       

In August this year, the purchasing managers' index (PMI) of the steel sector in China’s Hebei Province decreased to 47.3 percent, down 0.6 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 1.3 percentage points month on month to 41.8 percent, as announced by the China Steel Logistics Committee (CSLC).

The situation in the steel segment in Hebei was better in comparison to the whole of China owing to firmer local demand.

In August, the overall new order index for Hebei Province’s steel sector stood at 49.8 percent, up 1.3 percentage points compared to the previous month. In the transitional period between the offseason and the peak season, demand for steel and transaction activities recovered slightly. However, post-disaster reconstruction is on the agenda, which will stimulate the demand for steel in the coming month.

The new export order index stood at 33 percent, down 4.5 percentage points amid the implementation of the new export tax policy.

In the given month, the production index for Hebei Province’s steel sector was at 43.5 percent, down 2.8 percentage points month on month. The production restrictions due to the environmental protection continued, contributing to the declines in production index.

At the same time, the inventory index for finished steel in Hebei Province decreased to 47.6 percent, down 1.3 percentage points month on month.

In addition, the raw material inventory index for the steel sector in Hebei decreased to 39.1 percent, down 2.2 percentage points month on month.

As for September, demand for steel will improve in the traditional peak season, which will bolster steel prices.


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