Posted on 11 May 2022
The Purchasing Managers' Index for the steel industry in North China's Hebei province, the country's top steel production base, headed south again in April, declining by 4.2 basis points on month to 44, according to the latest release by the Hebei Metallurgical Industry Association on its website.
Despite the retreat, Hebei's April result was still 3.5 basis points above that for the national steel PMI, which slipped for the third consecutive month by another 3.8 basis points from March, Mysteel Global noted.
Last month, the sub-index for new orders among Hebei's steel mills came in at 43.2, lower by 2 basis points on month, due to the lackluster demand undermined by the impact of the COVID-19 resurgence in many cities across the province, the association explained. Local traders were cautious about stocking up, leading to the decrease in mills' orders, it said.
After the substantial rise witnessed during March, the sub-index for new export orders reversed down in April, plunging by 14.5 basis points on month to 45.5, as overseas buyers were hesitating to place new orders, given the sputtering economic recovery amid the unstable international situation, according to the release.
For April, the sub-index for Hebei's steel production also retreated by 4.5 basis points on month to 45.5 after the growth in March, mainly due to the shortage of steelmaking raw materials at mills' yards, the association pointed out. Deliveries had been disrupted by COVID control measures aimed at restricting traffic flow, as Mysteel Global reported.
The PMI result for finished steel stocks at Hebei's mills continued to mount in April to reach 68.2, up for the fifth month and by another 3.9 basis points on month, as slower transportation services meant finished steel products could not be delivered to the market on time.
The sub-index for raw materials stocks held by Hebei steelmakers slipped further last month, plunging by 20.2 basis points from March to a reading of just 25, as raw materials could not be replenished as planned amid the impact of the pandemic, the release showed.
Source:Mysteel Global
