Posted on 04 Jul 2025
The Purchasing Managers' Index (PMI) for the steel industry in North China's Hebei province, the country's top steel production base, fell further by 4 percentage points on month to register 47.7 in June, slipping into the contraction zone below 50 again after expanding for three months in a row, according to the Hebei Metallurgical Industry Association.
Despite that, Hebei's PMI in June was still 1.8 percentage points higher than the national steel PMI, which dipped 0.5 percentage point to 45.9, as reported.
Specifically, the sub-index for new orders received by Hebei's steel mills in June declined by 7.7 percentage points from May to sit low at 43.6, mainly as downstream demand weakened due to the onset of the off-season, which dampened steel trading activity.
However, the sub-index for new steel export orders in Hebei jumped 10.6 percentage points on month to reach 55.3 in June. The growth reflected an improved international trade environment last month and the competitive edge of Chinese steel products, the association pointed out.
In June, steel mills in Hebei limited their production against poor demand, bringing the sub-index for local steel production down by 2.5 percentage points from May to 47.5.
Meanwhile, the sub-index for steel stocks held by steelmakers in Hebei also dropped 7.9 percentage points on month to 42.1, driven mainly by decreased output at mills and high exports.
Most steel mills in Hebei purchased feed materials only as required last month amid weakening downstream steel demand and ample raw material supply. As such, the sub-index for raw material stocks held by local steelmakers declined 5 percentage points to 45 in June.
Source:Mysteel Global
