Domestic steel PMI drops to 49.5% in February
According to the index report released by the 28th China Federation of Steel Logistics Committee, the domestic steel industry PmI index in February was 49.5%, down 1.4 percentage points from the previous year, ending nine consecutive months of expansion.
According to the analysis, in the main sub-index, the production index fell to the contraction range, the new orders index declined but still in the expansion range, the new export orders index, finished goods inventory index fell slightly, the raw material inventory index rose to the expansion range. These indexes show that, affected by the Spring Festival holiday, environmental protection and production restrictions and weather factors, the steel industry business activities in February tended to contract, steel production and end demand have shrunk. However, steel companies' orders were well organized, corporate inventories were not under much pressure, and the overall situation of supply and demand in the industry remained positive.
Steel mill production contracted markedly, with the steel industry's production index standing at 45.4% in February, down 6.5 percentage points from a year earlier. Purchasing activities related to production continued to be active in February, the steel mills production contraction, affected by multiple factors: first of all, the northern winter environmental protection production restrictions continue to force, from the outside to limit the production space of the steel mills; secondly, the Chinese New Year holiday shortened the number of days of production of the mills, but also reduces the demand for the market, which reduces the willingness of the mills to produce. However, the steel mills to deal with the possible peak season of consumption in March, is still actively stockpiling raw materials, the release of late supply will be accelerated.
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