Posted on 01 Apr 2026
China's Purchasing Managers' Index (PMI) for the steel industry saw a huge recovery from February this month to reach 50.6, according to the latest release from index compiler CFLP Steel Logistics Professional Committee (CSLPC) published on March 31.
The figure for March was 3.9 points up on the February result and finally pointed to expansion after lingering in the contraction zone below 50 for the first time in seven months, the committee pointed out in the release. The rise was mainly due to the recovery in both supply and demand for the steel sector after the Chinese New Year (CNY) holiday in mid-February.
Outdoor construction activity is picking up with the resumption of operations at building sites, while steel demand for manufacturing is also strengthening. In addition, infrastructure projects are being advanced earlier in the year, driving steady growth in actual steel demand. During March, the sub-index for new steel orders mounted significantly by 10.9 points on month to register 51.2, marking the highest level in eight months, according to the CSLPC release.
But in contrast, escalating geopolitical conflict in the Middle East has been disturbing global trade, which has also placed pressure on China's steel export trade, the committee warns. The sub-index of new steel export orders came in at 39.6 in March, dropping by 10.1 points on month, according to the release.
Steelmakers also resumed work during March after the CNY break and those in North China lifted output after the frequent production curbs aimed at reducing airborne pollution were lifted. Consequently, the production sub-index returned to the expansion zone at 53.3 during this month from February's 46.8, the CSLPC data showed.
More active production among mills has led demand for steelmaking raw materials to increase, with the sub-index for raw material procurement rebounding swiftly by 18.5 points from February to reach 60.3 in March and marking the highest level in eight years, the release indicated.
Prices of those raw materials were also buoyed by the stronger demand, with those of iron ore, steel scrap, coke and coking coal all logging on-month increases. Consequently, the sub-index for raw material prices was decided at 68.8 this month, soaring by 23.3 points from last month and leaping into the expansion zone, according to the CSLPC.
For April, the committee predicts that steel demand will recover further as mild spring temperatures nationwide will provide ideal conditions for outdoor construction work. In addition, the operational rates in the machinery, automotive, home appliances, and new energy-related sectors are expected to remain at high levels next month, driven by the ongoing incentives for manufacturing equipment trade-ins.
As for steel supply, the CSLPC expects steel output to recover next month in response to recovering downstream demand and the easing of pollution-control restrictions in North China.
Tightening supply-demand dynamics would continue to push up prices of both steelmaking raw materials and finished steel in April, the committee forecasts.
Source:Mysteel
