Posted on 08 May 2024
The Purchasing Managers' Index (PMI) for the steel industry in North China's Hebei province, the country's top steel production base, climbed by another 12.7 percentage points on month in April to reach 60.3, rebounding above the threshold of 50 connoting expansion for the first time since January, according to the latest data released by the Hebei Metallurgical Industry Association.
Hebei's PMI reading last month was also 12.4 percentage points higher than that of the national steel PMI released by the official index compiler CFLP Steel Logistics Professional Committee, which gained 3.7 percentage points on month to score 47.9 in April, as Mysteel Global reported.
The sub-index for new orders received by Hebei's steel mills landed at 72.5 in April, jumping by 27.5 percentage points on month, the results showed. Sentiment in China's steel market continued to improve last month, with outdoor construction activity and steel demand turning more active.
In parallel, the sub-index for new steel export orders in Hebei also increased by 14.3 percentage points on month to reach 56.8 in April. Amid recovered overseas steel demand, China's steel exports continued to gain ground through price advantages last month, the Association noted.
Overall improved steel demand and optimism about future market trends last month after profits returned to the mills prompted steelmakers to actively speed up their pace of production, Mysteel Global notes. This was reflected in a 13.1 percentage points on-month rise in the sub-index for Hebei's steel production that registered 59.5 last month.
With steel transactions becoming more active, stocks held by steelmakers in Hebei declined further last month, with the sub-index dropping by another 15.4 percentage points on month to 30.8.
Meanwhile, the sub-index for raw material stocks held by local steelmakers moved higher by 11.9 percentage points on month to 52.4 in April, the Association's data showed. Amid improved market sentiment, the appetite of steel producers for raw materials increased steadily while replenishment demand for feedstocks before China's Labour Day holiday was also evident, according to the release.
Source:Mysteel Global
