In May this year, the purchasing managers index (PMI) for the Chinese steel sector was at 49.8 percent, 1.9 percentage points higher than that recorded in April 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 May, the new order index stood at 49.6 percent, 2.2 percentage points higher than in April.
In May, the new export order index stood at 52.2 percent, down 0.8 percentage points compared to April, while above 50 percent for the third consecutive month.
In the given month, the production index for the Chinese steel sector stood at 50.6 percent, 0.9 percentage points higher than in April, and was above 50.0 percent, which indicates that production activities have been expanding.
In May, the index of raw material purchase prices stood at 77.5 percent, 21.6 percentage points higher than in April, expanding significantly for the second consecutive month.
As for June, production of steel will likely move on a steady trend amid the hot weather and the stimulus policies for the real estate sector issued by China. It is thought that steel prices are unlikely to indicate a rising trend in June, but will edge down slightly.