In September this year, the purchasing managers index (PMI) for the Chinese steel sector was at 49 percent, 8.6 percentage points lower than that recorded in August 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 September, the new order index stood at 47.2 percent, 8.7 percentage points higher than in August.
In September, the production index for the Chinese steel sector stood at 54.8 percent, 19.9 percentage points higher than in August.
Steelmakers have been more willing to produce in September, stimulating them to purchase more raw materials. In September, the raw material purchasing volume index stood at 51.5 percent, 10.9 percentage points higher than in August, re-entering the expansion zone after three years.
In September, the index of raw material purchase prices stood at 27.7 percent, 8.1 percentage points higher than in August.
As for October, demand is expected to improve further due to the stimulus policies issued by the People’s Bank of China and other stimulus policies aimed at boosting the real estate sector. It is expected that finished steel prices will move up in October.