Steel market in China got a jerk with slight improvement.More than the quantum it was the temperament which was encouraging.In the backdrop of healthy growth in manufacturing activity for the first time in 13 months in November,according to a survey of factory managers by HSBC,Adding to evidence that the world's No.2 economy is recovering after seven quarter optimism was galore.
HSBC data showed that Purchasing Managers'Index(PMI)in November bounced up to 50.4,the first time above the 50 boom-or-bust line in 13 months.
New regime in China gave indication of growth driven economic stability in their policy statement.
Despite optimism in market sense of caution was prevalent during the winter season when business activity slows down.At the same time there was purchase management index(PMI)for China's steel distribution sector dropped 5.1 percentage points MoM to 45.2 in November indicating declining of steel prices.
Hence the market remained cautious with anticipated break after the winter holidays but before Chinese New Year in early February.
