In February this year, the purchasing managers' index (PMI) of the steel sector in China’s Hebei Province decreased to 45.9 percent, down 4.5 percentage points month on month, as announced by the Hebei Province Metallurgical Industry Association (MIA). In the given month, the trend of the PMI for the steel sector in Hebei Province was different from that for the whole of China, which remained stable month on month at 46 percent, as announced by the China Steel Logistics Committee (CSLC).
In February, the overall new order index for Hebei Province’s steel sector declined to 42.7 percent, down 8.5 percentage points compared to the previous month.
In the given month, the new export order index for Hebei Province’s steel sector was at 38.1 percent, down 5.1 percentage points month on month. Geopolitical conflicts such as the situation in the Red Sea negatively affected steel exports.
In the given month, the production index for Hebei Province’s steel sector was at 40.5 percent, down 7.1 percentage points month on month.
At the same time, the inventory index for finished steel in Hebei Province declined to 47.6 percent, down 9.7 percentage points month on month.
In February, the inventory index for raw materials in Hebei Province stood at 45.2 percent, up 1.2 percentage points month on month.
In the given month, the purchasing price index for raw materials in Hebei Province decreased to 26.2 percent, down 27.4 percentage points month on month.
As for March, the demand for steel from downstream users has improved but not as rapidly as market players had expected, which will exert a negative impact on steel prices.