Posted on 01 Apr 2025
In March, China's Purchasing Managers' Index (PMI) for the steel industry rose for a second month to score 46, up from 45.1 for February though remaining in the contraction zone below 50, according to the latest release from the CFLP Steel Logistics Professional Committee (CSLPC) on March 31.
The latest reading indicated the steel sector is recovering very gradually, with demand picking up slowly, while output is staying steady, CSLPC said. Both prices of raw materials and finished steel products trended downwards this month, it added.
The sub-index of new steel orders stood at 41.1 in March, up from 40.2 in the prior month. Behind the uptick in this sub-index was a slower-than expected recovery in steel demand from end-users, despite March usually being a strong month for the steel industry, according to the committee.
For domestic steel production during March, the sub-index grew to 47.1, as against 45.6 in February, according to the release. Domestic steel mills generally maintained stable operations, driven by healthy profit margins and a rise in demand, albeit slow, the committee explained.
Daily crude steel output increased over March 11-20, the committee noted, quoting data from the China Iron and Steel Association, with crude steel output among the member mills gaining by 1.6% from early March to average 2.17 million tonnes/day.
During March, the sub-index of procurement prices for steelmaking raw materials dipped to 35.4, compared with 35.7 in February, with prices of iron ore, coke, steel scrap all declining, CSLPC pointed out.
As for conditions in April, "steel demand and output may gain momentum (and) raw material and finished steel prices will likely rebound from low levels," the committee predicted.
Source:Mysteel Global
