In December last year, the purchasing managers' index (PMI) of the steel sector in China’s Hebei Province decreased to 48.2 percent, down 3.7 percentage points month on month, as announced by the Hebei Province Metallurgical Industry Association (MIA). In the given month, the movement of the PMI of the steel sector in Hebei Province remained in line with the steel sector PMI for the whole of China, which decreased by 2.3 percentage points month on month to 43.1 percent.
In December, the overall new order index for Hebei Province’s steel sector stood at 45.8 percent, down 9.5 percentage points compared to the previous month. In the given month, demand for steel from downstream users slackened in the traditional offseason for business.
In the given month, the production index for Hebei Province’s steel sector was at 48.2 percent, down 2.6 percentage points month on month. In December, steelmakers’ capacity utilization rates declined slightly due to production restrictions within the scope of environmental protection measures.
At the same time, the inventory index for finished steel in Hebei Province decreased to 44.0 percent, decreasing by 6.2 percentage points month on month. In December last year, traders started to build up stocks for winter.
In addition, the raw material inventory index for the steel sector in Hebei increased to 50.8 percent, up 2.8 percentage points month on month. The raw material purchase price index stood at 52.3 percent, down 1.7 percentage points month on month. In December, import iron ore and coke prices increased, while scrap prices decreased.
The Hebei Province Metallurgical Industry Association said it expects that demand for steel from downstream users in northern China will slacken with the approach of the Chinese New Year holiday. It is thought that finished steel prices in January this year will fluctuate within a limited range.