In July this year, the purchasing managers' index (PMI) of China's steel sector increased to 52.5 percent, exceeding 50 percent for only the second time since February this year, as announced by the China Steel Logistics Committee (CSLC) which is part of the China Federation of Logistics and Purchasing (CFLP).
In July, the production index for China's steel sector was 52.6 percent, indicating mills' increased outputs against a background of increases in steel prices and higher gross profits. In the given month, the new order index for China's steel sector stood at 57.3 percent. The raw material inventory index and the export order index were 44 percent and 52.7 percent respectively.
In July, the finished steel inventory index was 33.6 percent, indicating the obvious effect of destocking in the market and the easing of inventory pressure.
After indicating increases during almost a month, there is a lack of strong support for further rises in steel prices in the Chinese steel market and so domestic steel prices are likely to maintain a sideways trend in the coming period, though with some fluctuations.
