Posted on 08 Apr 2025
The Purchasing Managers' Index (PMI) for the steel industry in North China's Hebei province, the country's top steel production base, leapt by 8.2 percentage points on month to reach 54.1 in March, according to the Hebei Metallurgical Industry Association. Prior to this, the index had remained in the contraction zone below 50 for four consecutive months, Mysteel Global observed.
Hebei's PMI last month was also 8.1 percentage points higher than that of China's national steel PMI, which gained just 0.9 percentage points on month in March to reach 46, as reported.
The sub-index for new orders received by Hebei's local steel mills climbed by 11.6 percentage points on month to 60.3 in March, reflecting the strength of the steel market's recovery from the Chinese New Year holiday during early-to-mid February.
In contrast, globally trade measures still weighed on Chinese steel exports, with the sub-index for new steel export orders won by Hebei mills easing by 2.6 percentage point on month to 50 last month.
The slightly improved profitability saw Hebei's steelmakers increase their pace of production in March, with the sub-index for Hebei's steel output rising by 15.9 percentage points on month to 54.9. The hefty rise also reflected the fact that production curbs imposed by local governments on some northern steel mills to help reduce atmospheric pollution were also lifted during the month.
The sub-index for steel inventories held by Hebei steelmakers eased by 2.7 percentage points on month to 40.5 in March.
With mills increasing their production, the sub-index for raw material stocks held by local steelmakers rose by 3.7 percentage points from February to 42.7 last month but still well in the contraction zone, the association's data show.
Source:Mysteel Global
