中文
The Purchasing Managers' Index (PMI) in China's steel sector, an economic indicator for the industry, fell to 46.0 in December, according to the latest data released by the China Steel Logistics Professionals Committee (CSLPC).
The figure was 2.2 lower than the previous month, indicating a growing seasonal weakness in the steel sector with reduced market demand and production and accumulated stocks.
The index for production fell 2.2 month on month to 45.8 in December. The decline of enterprises' production willingness by weakened market demand, poor profits and intensified production curbs in heating season contributed to the decrease.
New order index witnessed a drop of 6.7 to 43 month on month in December, snapping a three-month sequential increase. The domestic steel market entered a traditional off-peak season, with demand slumping from major steel-consuming sectors amid a large swath of heavy snowfall and cold air.
CSLPC expects steel demand to continue to shrink in January 2024 as consumption in the construction and other steel-using sectors are expected further slow down due to cold air and approaching the Chinese Spring Festival, while traders would also gradually retreat from the market.
Raw material and steel prices are likely to retreat from high levels, while the steel production is expected to extend the downward trend.
(Writing by Riley Liang Editing by Emma Yang)
For any questions, please contact us by inquiry@fwenergy.com or +86-351-7219322.
