Posted on 08 Apr 2024
The Purchasing Managers' Index (PMI) for the steel industry in North China's Hebei province, the country's top steel production base, inched up by 1.7 percentage points from February to reach 47.6 in March, yet staying below the threshold of 50 connoting contraction, according to the latest data released by the Hebei Metallurgical Industry Association.
Hebei's PMI reading last month was 3.4 percentage points higher than that of the national steel PMI released by the official index compiler CFLP Steel Logistics Professional Committee, which lost 1.8 percentage points on month to land at 44.2 in March, as Mysteel Global reported.
Thanks to the gradual recovery of downstream steel demand in March, the sub-index for new orders received by steel mills in Hebei reached 45 last month, gaining 2.3 percentage points from February, the results showed.
The sub-index for new steel export orders in Hebei also moved higher by 4.4 percentage points on month to reach 42.5 in March. China's steel exports gained ground last month with rebounded steel demand and their price advantages in overseas markets, the Association noted.
On the supply side, the northern province saw an overall loose supply of steel products, especially flat items, in March, as reflected in a 5.9 percentage points on-month rise in the sub-index for Hebei's steel production that scored 46.4 last month, according to the release.
With falling steel prices and recovering steel demand, trading activity in the domestic steel market improved to some extent in March, which witnessed steel stocks held by steelmakers in Hebei move lower last month, with the sub-index slipping by another 1.4 percentage points on month to 46.2.
Meanwhile, the sub-index for raw material stocks held by local steelmakers decreased by 4.7 percentage points on month to 40.5 in the past month, the Association's data showed. Despite lower raw materials prices, many steelmakers still born with negative steel margins and purchased feedstocks just on immediate production needs, the release noted.
Source:Mysteel Global
