In May this year, the purchasing managers' index (PMI) of the steel sector in China’s Hebei Province increased to 53.1 percent, down 4.2 percentage points month on month, but still standing above 50 percent, as announced by the Hebei Province Metallurgical Industry Association (MIA). In the given month, the trend of the PMI for the steel sector in Hebei Province was the same as that for the whole of China, which decreased by 1.3 percentage points month on month to 47.9 percent, as announced by the China Steel Logistics Committee (CSLC).
In May, the overall new order index for Hebei Province’s steel sector decreased to 53.7 percent, down 6.1 percentage points compared to the previous month.
In May, the production index for Hebei Province’s steel sector decreased by 9.7 percentage points month on month to 54.9 percent, while the new export order index for Hebei Province’s steel sector declined by 24.5 percentage points month on month to 38 percent.
At the same time, the inventory index for finished steel in Hebei Province decreased by 2.8 percentage points month on month to 43.2 percent.
In May, the inventory index for raw materials in Hebei Province stood at 53.7 percent, up 6.1 percentage points month on month.
The ex-works price index for finished steel stood at 78.0 percent in May, down 1.3 percentage points month on month.
In May, the purchasing price index for raw materials stood at 75.6 percent, down 7.3 percentage points from April this year.
In May, demand for finished steel was slack amid widespread rainy weather. Coke prices indicated continuous rises, bolstering finished steel prices to a certain degree. Generally, the finished steel market was characterized by equilibrium amid the mixed impact of poor demand, declining supply and support from production costs.
