The purchasing manager’s index (PMI) tracking China’s iron and steel sector fell 5 percentage points month-on-month to 37.4% in June – it’s lowest since December 2008 according to the China Federation of Logistics and Purchasing (CFLP).
This is the 15th consecutive month that the figure has been under the 50% level, which demarcates growth from contraction.
The sub-index for steel production in June was 34.2%, down 6.5 percentage points from a month earlier.
In June new orders fell to 27.9%, down 9.7 percentage points month-on-month, showing lacklustre demand from downstream sectors.
The sub-index for new export orders was 50.7%, up seven percentage points month-on-month. This figure has increased for the past two consecutive months, indicating a favourable export situation.
The sub-index for finished product stocks was 55.1%, up 4.8 percentage points from May, the highest it’s been for five months, implying big pressure on sales.
Source: China Metals.