According to the Steel Logistics Professional Committee (CSLPC), at the end of September, the Purchasing Managers' Index (PMI) in the PRC steel industry reached 45.0 points, up 3.2 points from the previous month, but this proved negative. This indicator stays well below the 50 mark, which separates the expected rise from the bearish.
Obviously, the expert survey, in which the PMI value was determined, was carried out before the onset of the acute phase of the crisis, which led to a decline in steel production in the Chinese energy sector. The sub-index reflecting the issuance volume added 2 points to 46 points in September.
In addition, survey respondents' expectations for new domestic orders improved, although the value of this sub-index remained low by 39.0 points. The export orders sub-index remained at 39.5 points in August. At the same time, purchasing managers predicted that costs will continue to rise as the decline in iron ore prices is offset by the record increase in coking coal prices.
For the entire Chinese industry, the PMI index fell 0.5 points to 46.5 points in September. It dropped below 50 points for the first time in 18 months.
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