According to the Steel Logistics Professional Committee (CSLPC), the Purchasing Managers Index (PMI) in the Chinese steel industry added 0.5 points in September 2022. The data reached 46.6 points compared to the previous month. It shows that expectations are slightly improving, but not very positive overall.
As noted by the CSLPC, the major sub-indices stay below the 50-point level that separates expected growth from bearish. Thus, the production quantity sub-index in August rose from 47.4 points to 47.9 points, and the new orders sub-index rose from 43.1 to 45.3 points.
In October, Committee experts predict that domestic demand for steel products will increase further. This forecast suggests that it will help raise rental prices. As a result, Chinese metallurgists can expand their production volumes. If the expected is met, there may be a slight increase in raw materials.
The September value of the PMI index rose 0.7 points for the Chinese industry as a whole, according to China's National Bureau of Statistics (NBS). It reached 50.1 points compared to the previous month. After two months of decline, the equilibrium level was again exceeded.
As NBS noted, industrialists, especially large companies, expect continued growth in production in October. Manufacturers with this mindset include the food industry, mining and equipment manufacturing. However, despite all this, the new orders sub-index across the sector narrowly fell below 50 points.
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