Posted on 08 Jan 2026
The Purchasing Managers' Index (PMI) for the steel industry in North China's Hebei province, the country's top steel-production base, slipped by 3.1 points on month to sit low at 46 in December 2025, hovering below the 50-point threshold indicating contraction for the fourth straight month, according to the latest data released by the Hebei Metallurgical Industry Association.
The 46-point reading was also lower than China's national steel PMI released by the CFLP Steel Logistics Professional Committee on December 31 which dropped by 1.7 points on month to register 46.3 in December, as Mysteel Global reported.
The sub-index for new orders received by Hebei's steel mills slumped by 6.4 points on month to 42.3 last month, the association's data showed. Cold winter weather in China's northern regions disrupted outdoor construction activities, causing a substantial shrinkage in end-user demand and new orders, the association noted.
Meanwhile, the sub-index for new steel export orders by local steel mills plunged by 9.3 points to sit low 35.7 last month, mainly as China introduced the new steel export licensing system in mid-December, which officially went into effect on January 1 2026. While the new rules have impacted steel export orders in the near term, the association commented that it will be conducive to regulating the metal exports in the long term.
Pressured by dwindling end-demand and deepening losses, steel mills in Hebei increased plant overhauls and scaled back their production last month, sending the sub-index for steel production in Hebei lower by 1.2 points on month to 42.7 in December.
In tandem, expanded maintenance among steel mills led the demand for raw materials to decrease to a certain extent. Therefore, the sub-index for raw material stocks dropped by 3.7 points from November to 51.2 in the past month.
Similarly, reduced output at steel mills also caused the stocks of finished steel items held by mills and traders to decrease by 7.9 points to 43.4, the data showed.
Looking ahead, Chi Guiyou, executive president and secretary general of the association, urged local steelmakers to seize the opportunity in 2026, the first year of China's 15th Five-Year Plan, to accelerate the green transition and equipment upgrades, promoting intelligent and integrated development within the industry.
Source:Mysteel
