In March this year, the purchasing managers' index (PMI) of the steel sector in China’s Hebei Province increased to 51.6 percent, up 2.8 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 3.9 percentage points month on month to 50.6 percent, as announced by the China Steel Logistics Committee (CSLC).
In March, the overall new order index for Hebei Province’s steel sector increased to 57.5 percent, up 11.2 percentage points compared to the previous month.
In March, the production index for Hebei Province’s steel sector decreased by 2.4 percentage points, standing at 43.9 percent.
In the given month, the new export order index for Hebei Province’s steel sector rose by 4.9 percentage points month on month to 52.5 percent.
At the same time, the inventory index for finished steel in Hebei Province decreased by 17.5 percentage points month on month to 33.8 percent.
In March, the inventory index for raw materials in Hebei Province stood at 46.3 percent, down 12.2 percentage points month on month.
The ex-works price index for finished steel stood at 70.7 percent in March, up 42.6 percentage points month on month.
In March, the purchasing price index for raw materials stood at 68.3 percent, up 25.6 percentage points from February this year.
In early March, steelmakers in northern China were required to halt production for the Two Sessions in Beijing, which reduced outputs of steel and bolstered steel prices.
In March, the production of steel indicated slight declines, while demand from downstream users improved amid the resumption of construction activities. However, the ongoing geopolitical tensions in the Middle East negatively affected market sentiments. Against the backdrop of the steady recovery of the domestic economy and the policy support, supply and demand in the steel market basically remained balanced.
