In September this year, the purchasing managers' index (PMI) of the steel sector in China’s Hebei Province increased to 45.7 percent, up 11.3 percentage points month on month, still below 50 percent, while reflecting the improvement of the provincial steel industry, as announced by the Hebei Province Metallurgical Industry Association (MIA). In the given month, the PMI for the whole of China rose by 8.6 percentage points month on month to 49 percent, as announced by the China Steel Logistics Committee (CSLC).
In September, the overall new order index for Hebei Province’s steel sector increased to 41.5 percent, up 15.9 percentage points compared to the previous month. The traditional offseason was over, and China issued several stimulus policies, boosting the economy, which exerted a positive impact on the new order index for Hebei Province’s steel industry.
In the given month, the new export order index for Hebei Province’s steel sector increased to 52.3 percent, up 0.1 percentage points month on month. Overseas interest rates are expected to be cut, stimulating foreign customers to be more active in placing orders.
In the given month, the production index for Hebei Province’s steel sector rose to 50 percent, up 21.4 percentage points month on month. Improved profitability on the steelmakers’ side caused them be more willing to produce.
At the same time, the inventory index for finished steel in Hebei Province decreased to 37.2 percent, down 19.2 percentage points month on month.
In September, the inventory index for raw materials in Hebei Province stood at 42.9 percent, up 9.6 percentage points month on month as steelmakers had built up some stocks ahead of the long National Day holiday.
In September, iron ore, coke and scrap prices moved up, contributing to the rises in the purchase price index for raw materials, which stood at 27.4 percent, up 16.7 percentage points in August.
Steel prices in Hebei Province are anticipated to follow an upward trend in October amid the booming stock market and the positive impact from the series of stimulus policies issued by China’s government.