In May this year, the purchasing managers' index (PMI) of the steel sector in China’s Hebei Province rose to 39.7 percent, up 2.9 percentage points month on month, 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 different to that for the whole of China, which decreased by 9.8 percentage points month on month to 35.2 percent, as announced by the China Steel Logistics Committee (CSLC).
In May, the overall new order index for Hebei Province’s steel sector stood at 29.8 percent, up 3.6 percentage points compared to the previous month. Decreasing raw material prices weakened the support for finished steel prices, while the low levels of steel prices stimulated transaction activities.
In the given month, the new export order index for Hebei Province’s steel sector was at 36.5 percent, up 8.5 percentage points month on month, while the production index for Hebei Province’s steel sector was at 45.3 percent, up 6.9 percentage points month on month.
At the same time, the inventory index for finished steel in Hebei Province decreased to 48.8 percent, down 3.7 percentage points month on month.
Meanwhile, the inventory index for raw materials in Hebei Province declined to 23.3 percent, down 1.1 percentage points month on month.
Chi Guiyou, executive president and secretary general of the MIA, stated that a situation of oversupply has developed at steel enterprises and so the steel industry will make adjustments in relation to supply and product variety structure.