The Purchasing Managers' Index (PMI) in the Chinese steel industry decreased in value by 3.4 p.p. according to the April 2023 report. The decrease amounted to 45.0 points.
At the same time, the boundary between the expected growth and decrease is moving along the line of 50 points. According to representatives of the global market, purchasing managers involved in the compilation of the index highly negatively assessed the level of new orders. The corresponding sub-index decreased by 10.3 p.p. According to the April report, after five months of growth, it decreased by 4.6 points.
Experts believe that the main reason for the decrease in the Chinese market is the insufficient demand from the automotive sector, as well as housing and infrastructure construction.
It is also expected that there will be a contraction in apparent consumption and lower prices for steel products in May. For this reason, metallurgical companies may reduce production. According to the National Bureau of Statistics of the People's Republic of China (NBS), the value of the PMI index for Chinese industry as a whole decreased by 2.7 points in April.
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