In October this year, the purchasing managers' index (PMI) of the steel sector in China’s Hebei Province decreased to 51.8 percent, down 0.5 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 not the same compared to that for the whole of China, which increased by 1.9 percentage points month on month to 45.8 percent.
In October, the overall new order index for Hebei Province’s steel sector stood at 54.7 percent, up 0.7 percentage points compared to the previous month and above 50 percent for the sixth consecutive month, reflecting improving demand for steel amid the economic recovery.
The new export order index stood at 42.3 percent, up 1.8 percentage points due to insufficient supply from other countries against the backdrop of the Covid-19 pandemic in the global market.
In the given month, the production index for Hebei Province’s steel sector was at 51.8 percent, still above the 50 percent mark but down 2.2 percentage points month on month due to the production restrictions in Tangshan aimed at environmental protection.
At the same time, the inventory index for finished steel in Hebei Province was 50.0 percent, up 4.0 percentage points month on month.
In addition, the raw material inventory index for the steel sector in Hebei decreased to 45.5 percent, down 0.5 percentage points month on month.
Chi Guiyou, executive president of the MIA, forecast that the PMI of the steel sector in Hebei Province will likely remain above 50.0 percent amid the improving national economy.