Posted on 03 Jun 2026
The Purchasing Managers' Index (PMI) for the steel industry in North China's Hebei province -- the country's top steel production base -- fell 4.2 points on month to 53.1 in May, still above the 50 threshold that indicates expansion though, according to the new data released by the Hebei Metallurgical Industry Association.
The reading was 5.2 percentage points higher than China's national steel PMI, which dipped 1.3 points from April to 47.9 in May, as reported.
During May, the sub-index for new orders received by Hebei's steel mills declined 6.1 points from April to 53.7, as downstream demand was dampened by the seasonal rainfall that had swept several parts of China last month, according to the release.
Meanwhile, the sub-index for new export orders plunged by 24.5 points on month to sit low at 38 in May, the Association's data showed. The sharp drop reflected mounting challenges facing China's steel exports, including rising trade barriers worldwide, the impact of the EU's CBAM, and intensifying competition from other steel-exporting countries such as Indonesia and India, the Association indicated.
Indeed, over the past two months, China has faced a series of anti-dumping, countervailing or safeguard measures culminating in affirmative rulings announced and duties imposed against or impacting its steel products, Mysteel Global noted.
These measures include Vietnam's imposition of 27.83% anti-circumvention duty on Chinese HRC since April 17 and Australia's imposition of 38.1%-79% anti-dumping duties alongside 3.4% countervailing duties on HRC imports from selected Chinese exporters on May 4, as reported.
On the supply side, steel mills in Hebei continued to rein in their production and optimized their product portfolios last month, with the sub-index for production falling 9.7 points on month to 54.9, the release said. The decrease in steel output also caused the sub-index for finished steel stocks at local mills to edge down by 2.8 points to 43.2 in May.
However, the sub-index for raw material stocks rose 6.1 points on month to 53.7 last month, mainly because steel mills increased procurement of feedstocks amid concerns over rising raw material costs driven by prolonged geopolitical tensions in the Middle East. Meanwhile, the sub-index for raw material procurement prices fell by 7.3 points to 75.6 in May, according to the released data.
Source:Mysteel Global
