Chinese Steel Sector PMI Rises above 50 in May
Steelguru - China Federation of Logistics and Purchasing’s China Steel Logistics Committee announced that the Purchasing Managers Index for the Chinese Steel Sector was at 50.9 percent in May 2020, up 5.0 percentage points as compared to April as steel production in China increased further and demand from downstream users improved. In May, the production index for the Chinese steel sector increased by 3.0 percentage points compared to the previous month to 56.4 percent. Meanwhile, in May the sub-index for new orders in the steel sector saw a rise of 13 percentage points month on month to 52.9 percent. The new export orders index indicated a slight increase of 4.1 percentage points month on month to 31.9 percent, but was lower than 40 percent for the third consecutive month as there was no significant improvement in the coronavirus pandemic situation worldwide, and most mills preferred to sell to the local market while competition in the export market remained high.