Posted on 05 Dec 2025
The Purchasing Managers' Index (PMI) for the steel industry in North China's Hebei province, the country's top steel production base, nudged up by 0.3 basis point on month during November to sit at 49.1 but remained in the contraction zone below the threshold of 50, according to the latest data released by the Hebei Metallurgical Industry Association.
The index was 1.1 basis point higher than China's national steel PMI released by the CFLP Steel Logistics Professional Committee on November 30 that had dipped by 1.2 basis points on month to register 48 in November, as Mysteel Global reported.
The sub-index for new orders received by Hebei's steel mills rose by 2.6 basis points on month to 48.7 last month, the association's data showed. Although November typically marks an off-peak month for steel consumption, demand from end-users showed some resilience from buyers needing steel to finish projects or meet manufacturing targets before year's end.
Meanwhile, the easing of tension between Washington and Beijing following the China-US presidential meeting in Busan, South Korea at the end of October also gave a lift to global steel market confidence, the Hebei association maintained, which sent the sub-index for new steel export orders by Chinese mills up by 2.5 basis points last month – albeit remaining in the contraction zone at 45.
However, widening losses compelled steel mills reduce production and start plant overhauls, bringing the sub-index for steel production in Hebei lower by 3.7 basis points to 43.9 in the past month.
On the other hand, immediate production needs and expectations about tightening raw material supplies – especially coal and coke out of air pollution concerns – prompted steel mills to hoard more feedstock at their yards. The sub-index for raw material stocks jumped by 9.8 points from October to 54.9 in November.
Similarly, the stocks of finished steel items held by mills and traders also moved higher last month by 1.3 basis points to 51.3, the data showed.
Output reductions by mills either because of maintenance stoppages or to bolster profits led finished steel prices to drift higher last month. As the production fall is likely to persist in December, this, coupled with the sentiment lift brought by this month's economic planning meetings in Beijing, may give a boost to the steel prices in the near term, the association's suggested. On the downside however, weakening end-demand may serve as a drag.
Therefore, the association predicted that domestic steel prices would likely remain rangebound this month.
Source:Mysteel Global
