In January this year, the purchasing managers index (PMI) for the Chinese steel sector stood at 40.7 percent, down sharply by seven percentage points as compared to December last year, remaining below 50 for the fifth consecutive month and falling to the lowest level since September 2012. as announced by the China Steel Logistics Committee (CSLC) which is part of the China Federation of Logistics and Purchasing (CFLP).
In addition, in January the production index for the steel sector indicated a 11.8 percentage point month-on-month decrease to 35.3 percent, the lowest level since December 2008. Meanwhile, in January, the raw material inventory index for the sector returned to the contraction zone with a 5.1 percentage point month-on-month decrease to 49.6 percent, while the sub-index for new orders declined by 12.1 percentage points month on month to 33.5 percent, falling to the lowest level since September 2012.
