Posted on 06 Aug 2024
The Purchasing Managers' Index (PMI) for the steel industry in North China's Hebei province, the country's top steel production base, declined by another 3 percentage points on month to sit at 39.5 in July, falling for the third consecutive month and hitting the lowest reading since April 2023, according to the latest data released by the Hebei Metallurgical Industry Association.
Hebei's PMI reading last month was also 3 percentage points below that of the national steel PMI released by the official index compiler CFLP Steel Logistics Professional Committee, which decreased by another 5.3 percentage points on month to 42.5 in July, as Mysteel Global reported.
The sub-index for new orders received by Hebei's steel mills continued to decline in July, falling by another 8.8 percentage points on month to 25. China's steel demand remained constrained last month, as high temperatures and heavy rains affecting most regions of the country had disrupted outdoor construction activities.
But the sub-index for new steel export orders won by Hebei mills jumped by 4.3 percentage points on month to reach 50 in July, thanks to the relatively strong price competitiveness of Chinese steel exports, the Association noted.
The sub-index for Hebei's steel production stayed unchanged on month at 47.6 in July, as weak steel demand and expanded losses weakened the incentive of steel mills to raise production.
At the same time, insipid steel transaction activity led the sub-index for steel inventories held by steelmakers in Hebei to climb by 9.2 percentage points from June last month to record 66.7.
In tandem, the sub-index for raw material stocks held by local steelmakers also dipped by 0.9 percentage points on month to land at 34.5, as steelmakers continued to endure losses and so only procured feedstocks for their immediate needs.
Source:Mysteel Global
