In February this year, the purchasing managers index (PMI) of the steel sector in China’s Hebei Province increased to 45.9 percent, down 2.3 percentage points month on month, still below 50 percent, as announced by the Hebei Province Metallurgical Industry Association (MIA). In the given month, the trend of the PMI for the steel sector in Hebei Province was different from that for the whole of China, which increased by 1.8 percentage points month on month to 45.1 percent, as announced by the China Steel Logistics Committee (CSLC).
In February, the overall new order index for Hebei Province’s steel sector increased to 48.7 percent, up 4.8 percentage points compared to the previous month amid downstream users accelerating their resumption of work after the Chinese New Year holiday.
In February, the production index for Hebei Province’s steel sector decreased by 8.6 percentage points, standing at 39.0 percent.
In the given month, the new export order index for Hebei Province’s steel sector decreased by 2.4 percentage points month on month, standing at 52.6 percent. The United States, South Korea and Vietnam have announced tariffs on imports from China, intensifying global trade protectionism, exerting a negative impact on China's steel exports.
At the same time, the inventory index for finished steel in Hebei Province declined by 8.1 percentage points month on month, standing at 43.2 percent in February.
In February, the inventory index for raw materials in Hebei Province stood at 39.0 percent, down 17.0 percentage points month on month.
The ex-works price index for finished steel stood at 51.2 percent in February, down 19.0 percentage points month on month.
In February, the purchasing price index for raw materials stood at 34.2 percent, down 3.9 percentage points from January this year.
Steel prices in Hebei Province are likely to rebound in March due to the expected improved demand from downstream users during the traditional peak season.