The Purchasing Managers' Index (PMI) in the steel sector, an economic indicator for the industry, declined by 4.2 to 40.1 in November, down for the second straight month, according to the latest data released by the China Steel Logistics Professionals Committee (CSLPC).
This was mainly ascribed to lukewarm demand from construction and manufacturing factories amid COVID flare-ups and seasonal weakness. Major steel-consuming sector real estate remained at a low ebb amid tight cash flows and debt crisis.
New order index declined significantly by 8.9 month on month to 34.5 in November, data showed.
Lukewarm demand together with environmental inspections still restrained steel production, with the index at 39.3 down below 40 for the second straight month.
Steel prices remained on the decline, but at a slower rate, partly due to the policy stimulus pack. Shanghai rebar price index rebounded to 3,701 yuan/t on November 25 after hitting the intra-month low of 3,605 yuan/t, which was also the lowest so far in the year.
The sub-index for material buy prices stood at 38, down 1.9 from October and marking the third month of decline.
The CSLPC expected steel demand would continue to decline, steel production to further slide, steel prices would stay at low levels, and raw material prices may remain on the downtrend in December.
(Writing by Emma Yang Editing by Tammy Yang)
For any questions, please contact us by inquiry@fwenergy.com or +86-351-7219322.