In November this year, the purchasing managers index (PMI) for the Chinese steel sector was at 50.6 percent, 4.0 percentage points lower than that recorded in October 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 November, the new order index stood at 50.5 percent, 5.0 percentage points lower than in October.
In November, the production index for the Chinese steel sector stood at 53.6 percent, 10.0 percentage points lower than in October.
In November, the index of raw material purchase prices stood at 38.1 percent, 18.4 percentage points lower than in October.
In November, the index of finished steel inventory stood at 57.9 percent, 4.3 percentage points higher than in October, rising for the second consecutive month, signaling a gradual acceleration of the current rate of stock build-up.
As for December, the demand from downstream users will slacken further, which will contribute to the increasing inventory levels of finished steel and exert a negative impact on steel prices. The anticipated declining production of steel will negatively affect raw material prices, which will weaken the support for steel prices accordingly. It is thought that steel prices in the Chinese domestic market will edge down in December.