In February this year, the purchasing managers index (PMI) for the Chinese steel sector was at 46 percent, unchanged compared to January 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 February, the new order index stood at 41.4 percent, 2.4 percentage points lower than that recorded in January, falling to the lowest level in the past nine months.
In the given month, the production index for the Chinese steel sector stood at 45.2 percent, 1.5 percentage points higher than in January.
In February, the finished steel inventory index stood at 52.8 percent, 9.1 percentage points higher than in January. This was the third successive month-on-month rise as well as the highest level reached in the past year.
In February, the index of raw material purchase prices stood at 49.6 percent, 8.2 percentage points lower than in January, and falling below 50 percent for the first time in seven months.
In February, the expectation index for production and business activities stood at 52 percent, 6.5 percentage points lower than in January.
As for March, demand for steel from downstream users will improve when the weather becomes better. Recently, raw material prices have edged down, easing the pressure from the cost side, which will stimulate steelmakers to increase production activities. It is thought that production will increase in March, and oversupply may gradually appear as demand is expected to recover more slowly than production activities.