In January this year, the purchasing managers index (PMI) for the Chinese steel sector was at 47.5 percent, up 8.8 percentage points compared to December last year, as announced by the China Steel Logistics Committee (CSLC), which is part of the China Federation of Logistics and Purchasing (CFLP).
In January, the production index for the Chinese steel sector stood at 53.4 percent, 17.5 percentage points higher than that recorded in December, remaining above 50.0 percent, signaling steelmakers’ increased production in the given month.
Meanwhile, in January the sub-index for new orders in the steel sector stood at 40.6 percent, much higher than 28.1 percent in December, but still below 50 percent, reflecting the lack of a strong increase in demand in the given month.
At the same time, the inventory index rose by 4.9 percentage points to 36.7 percent.
As for February, steel prices may edge up amid improved demand following the long Chinese New Year holiday and reduced production during the Winter Olympics.