In March this year, the purchasing managers' index (PMI) of the steel sector in China’s Hebei Province increased to 52.4 percent, up 6.7 percentage points month on month, as announced by the Hebei Province Metallurgical Industry Association (MIA). In the given month, the trend of the steel sector in Hebei Province was different from that for the whole of China, which decreased by 0.7 percentage points month on month to 47.9 percent.
In March, the overall new order index for Hebei Province’s steel sector stood at 60.9 percent, up 14.7 percentage points compared to the previous month. The resumption of construction activities stimulated demand for steel in the given month. The new export order index stood at 49.5 percent, up 0.5 percentage points amid the improved demand for steel in the overseas market.
In the given month, the production index for Hebei Province’s steel sector was at 45.7 percent, up 3.6 percentage points month on month, but was still below the 50 percent mark, signaling a slowdown in output, though less of a slowdown compared to that seen in February.
At the same time, the inventory index for finished steel in Hebei Province decreased sharply to 41.3 percent, down 20.1 percentage points month on month. This was due to good demand in March and sharp stock increases in February partly caused by the long holiday.
The raw material purchasing index in Hebei Province decreased to 50.6 percent, down 19.9 percentage points month on month.
Chi Guiyou, executive chairman of Hebei Province Metallurgical Industry Association, stated that steel output was relatively low in March this year due to the production restrictions in Tangshan. Construction activities in northern China will be in full swing in the second quarter of the current year, and so the steel industry will maintain firm growth in the coming month.