In December this year, the purchasing managers index (PMI) for the Chinese steel sector was at 46 percent, 2.2 percentage points lower compared to November this year, as announced by the China Steel Logistics Committee (CSLC), which is part of the China Federation of Logistics and Purchasing (CFLP).
Moreover, in December, the new order index stood at 43 percent, 6.7 percentage points lower than in November, ending a three-month rising trend.
In the given month, the production index for the Chinese steel sector stood at 45.8 percent, 2.2 percentage points lower than in November.
In December, the index of raw material purchase prices stood at 76.5 percent, 0.5 percentage points lower than in November, but still remaining at a relatively high level.
As for January, demand for steel may slacken, which will exert a negative impact on steel prices. At the same time, iron ore prices may soften due to the weak performance of the steel market.