In June this year, the purchasing managers' index (PMI) of the steel sector in China’s Hebei Province rose to 48.4 percent, up 8.7 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 in line with that for the whole of China, which rose by 14.7 percentage points month on month to 49.9 percent, as announced by the China Steel Logistics Committee (CSLC).
In June, the overall new order index for Hebei Province’s steel sector stood at 48.8 percent, up 19.0 percentage points compared to the previous month. The rebounding trend in finished steel prices in June exerted a positive impact on market sentiments.
In the given month, the new export order index for Hebei Province’s steel sector was at 42.9 percent, up 6.4 percentage points month on month, while the production index for Hebei Province’s steel sector was at 48.8 percent, up 3.5 percentage points month on month.
At the same time, the inventory index for finished steel in Hebei Province decreased to 38.8 percent, down 10.0 percentage points month on month. The continuous rises in steel prices stimulated purchasing activities from downstream users, which resulted in declining inventory level in June.
Meanwhile, the inventory index for raw materials in Hebei Province increased to 39.3 percent, up 16.0 percentage points month on month.
Chi Guiyou, executive president and secretary general of the MIA, stated that in June high temperatures and the rainy weather negatively affected the production activities of the steel industry. At the same time, demand for steel has been slack, which has weakened the support for steel prices in the given month.