In June this year, the purchasing managers index (PMI) for the Chinese steel sector was at 47.8 percent, 2.0 percentage points lower than that recorded in May 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 June, the new order index stood at 49.4 percent, 0.2 percentage points lower than in May.
In the given month, the production index for the Chinese steel sector stood at 45.9 percent, 4.7 percentage points lower than in May, indicating that steel producers were unwilling to produce amid increasing inventory levels and slackening demand from downstream users.
In June, the index of raw material purchase prices stood at 38.6 percent, 38.9 percentage points lower than in May, shrinking significantly following rises in the previous three months.
As for July, steel production activities may improve slightly, while raw material prices may fluctuate within a limited range at low levels. Steel prices may indicate a rebounding trend in July, having hit the lowest levels in the year.