Posted on 07 May 2026
The Purchasing Managers’ Index (PMI) for the steel industry in North China’s Hebei province -- the country’s top steel production base -- jumped 5.7 points on month to hit a two-year high of 57.3 in April, staying well above the 50 threshold that indicates expansion, according to the new data released by the Hebei Metallurgical Industry Association.
The reading was 8.1 percentage points higher than China's national steel PMI, which dipped 1.4 points from March to 49.2 in April, as reported.
The divergence between Hebei's PMI and the national figure largely reflects stronger steel fundamentals in North China compared with other regions such as South China, an industry watcher suggested.
Strong export orders for Chinese billets and construction steel products continued to reduce inventories at mills in the northern region, while rainy weather and tepid demand led to higher stockpiles at mills and traders' warehouses in the south, Mysteel Global noted.
During April, the sub-index for new orders received by Hebei's steel mills rose 2.3 points to 59.8, supported by steady demand from new infrastructure projects and manufacturing enterprises, according to the release.
Meanwhile, the sub-index for new export orders surged by 10 points on month to 62.5 in April, the Association's data showed, as a widening gap between China's export and domestic steel prices encouraged more mills to increase shipments abroad.
This, combined with China's steel price advantage compared with other exporting countries, drove a sharp rise in export orders last month, the Association said.
With mills operating at high capacity during the peak steel consumption season, the sub-index for production in Hebei jumped 20.7 points from March to 64.6 in April. The increase was also amplified by the relatively low production base in March.
The rebound in steel output pushed the sub-index for finished steel stocks at mills up 12.2 points to 46. However, given relatively firm demand from downstream construction and manufacturing sectors, mills in Hebei did not face significant inventory pressure, the release noted.
On the other hand, the sub-index for raw material stocks edged up just 1.3 points on month to 47.6 in April, as mills remained cautious amid high feedstock prices, the Association said.
Source:Mysteel Global
