Posted on 02 Mar 2023
In February, China's Purchasing Managers' Index (PMI) for the steel industry increased for the third straight month by another 3.5 percentage points on month to 50.1, back to the expansion zone for the first time since June 2020, according to the latest release from the CFLP Steel Logistics Professional Committee (CSLPC) on Wednesday.
Domestic steel demand gradually recovered during February, steel output grew further, raw materials prices rose to high levels, and finished steel prices also moved up in fluctuation, the committee said.
As for March, "steel demand may continue to grow, steel production will be modestly volatile, raw materials prices may hover high, and prices of finished steel products may have some room to rise," CSLPC estimated.
The sub-index for new steel orders for both domestic sales and exports in February swelled further by 5 percentage points on month to 48.9, as the COVID-induced impact eased, major construction projects in many cities commenced, and work on building sites and factories gradually resumed, the committee noted. However, the sub-index remained below 50, suggesting the overall steel demand was still weak.
Rising demand and improved logistics services, together with the easing pandemic disruptions, resulted in a further incline in China's steel production sub-index for February, which climbed by 0.9 percentage point on month to 51.1, according to CLSPC.
Daily crude steel output among the member mills of the China Iron & Steel Association grew further by 1.5% from early February to average 2.09 million tonnes/day during the middle 10 days of February, CSLPC quoted the association's data.
For February, the growth in steel mills' production led to more purchases of raw materials, and thus pushed up the prices. The sub-index of the steelmaking raw material procurement prices reached 64.7, or having persisted above 60 for the second month, according to the release.
Source:Mysteel Global
