The Purchasing Managers' Index (PMI) for the steel sector in China's leading steel-making province Hebei fell 4.5 percentage points (pps) month on month to 45.9 in February 2024, data from the province's Metallurgical Industry Association showed.
In February, the new order index stood at 42.7, down 8.5 pps month on month. Construction activities mostly stopped during the Spring Festival. Companies focused on the construction of unfinished projects after the holiday, leading to fewer new projects compared to the year-ago level. This, coupled with snowfalls, weakened downstream demand.
The new export order index was at 38.1, down 5.1 pps on the month, as ongoing geopolitical conflicts in the Red Sea hampered steel exports, weighing on export demand, the association said.
The production index was at 40.5, felling 7.1 pps month on month. Steel mills were slow to resume operations and maintained relatively low-level operating rates, due to waned finished steel demand and ongoing losses.
At the same time, the inventory index for finished steel in Hebei stood at 47.6, down 9.7 pps from a month ago in February, while the ex-factory price index for finished steel plunged 40.4 pps to 28.6 month on month.
The inventory index for raw materials increased 1.2 pps on the month to 45.2, as downstream companies have resumed operations after the festival, and steel mills still purchased on a need-to basis.
And the purchase index for raw materials fell 27.4 pps to 26.2, stimulated by dropped prices of iron ore, met coke and scrap steel.
(Writing by yan.sun Editing by Harry Huo)
For any questions, please contact us by inquiry@fwenergy.com or +86-351-7219322.