In October this year, the purchasing managers' index (PMI) of the steel sector in China’s Hebei Province increased to 48.8 percent, up 0.1 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 the same as that for the whole of China, which increased by 1.5 percentage points month on month to 49.2 percent, as announced by the China Steel Logistics Committee (CSLC).
In October, the overall new order index for Hebei Province’s steel sector decreased to 46.1 percent, down 3.9 percentage points compared to the previous month.
In October, the production index for Hebei Province’s steel sector increased by 7.3 percentage points, standing at 47.6 percent.
In the given month, the new export order index for Hebei Province’s steel sector declined by 12.5 percentage points month on month to 42.5 percent.
At the same time, the inventory index for finished steel in Hebei Province increased by 1.3 percentage points month on month to 50.0 percent.
In October, the inventory index for raw materials in Hebei Province stood at 45.1 percent, down 3.7 percentage points month on month.
The ex-works price index for finished steel stood at 32.9 percent in October, down 6.1 percentage points month on month.
In October, the purchasing price index for raw materials stood at 67.1 percent, up 3.7 percentage points from September this year.
Steel prices in Hebei Province will likely edge up first and move down later in November as the weather is getting colder and colder, which will slacken the demand for steel and negatively affect prices.