In December this year, the purchasing managers index (PMI) for the Chinese steel sector was at 47.5 percent, 3.1 percentage points lower than that recorded in November 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 December, the new order index stood at 48.7 percent, 1.8 percentage points lower than in November.
In December, the production index for the Chinese steel sector stood at 48.3 percent, 5.3 percentage points lower than in November.
In December, the index of raw material purchase prices stood at 29.5 percent, 8.6 percentage points lower than in November.
In December, the index of finished steel inventory stood at 44.3 percent, 13.6 percentage points lower than in November.
As for January, as the Chinese New Year is approaching, demand for steel will slacken, which will weaken the support for finished steel prices. At the same time, environmental protection measures for the winter season will exert a negative impact on steelmakers’ eagerness to produce. As a result, steel supply in January will decrease, while demand for raw materials will also decline, which will result in decreaes in iron ore prices.