The Purchasing Managers' Index (PMI) in the steel sector, an economic indicator for the industry, continued rebounding slightly for the second straight month to 46.6 in September, according to the latest data released by the China Steel Logistics Professionals Committee (CSLPC).
This indicated continued improvement in the steel market, yet the recovery was still relatively slow.
The sub-index for production rose slightly to 47.9 in September from 47.4 a month ago, yet it remained below the 50-mark threshold that separates contraction from expansion, data showed. Steel production still registered relatively small growth in the month, implying prudence of raising operations.
The sub-index for new orders increased 2.2 points on the month to 45.3, presenting recovering demand for steel products.
The declined finished steel prices kept weighing down raw material prices in September. The sub-index for purchase price dipped 1.1 points from August to 42.9.
The CSLPC expected steel demand to further recover in October, which may keep spurring steel production and buoying raw material prices.
(Writing by Tammy Yang Editing by Harry Huo)
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