In August this year, the purchasing managers index (PMI) for the Chinese steel sector was at 48.4 percent, down by 0.2 percentage points as compared to July, still below the 50 percent threshold, as announced by the China Steel Logistics Committee (CSLC), which is part of the China Federation of Logistics and Purchasing (CFLP).
In addition, in August the production index for the steel sector indicated a 3.6 percentage point month-on-month increase to 54.3 percent. Meanwhile, in August the raw material inventory index for the sector increased to 45.4 percent with a 2.3 percentage point month-on-month increase, while the sub-index for new orders saw a decline of 4.5 percentage points month on month to 44.6 percent.
In the given month, the finished steel inventory index increased to 56.7 percent, up 1.6 percentage points month on month, while the index for new export orders rose to 53.2 percent, up five percentage points month on month, indicating that China's steel exports performed better in August compared to July. In August, the purchase price index in the Chinese steel sector stood at 34.8 percent, seeing a significant decline of 7.5 percentage points month on month.
