NEWS
IRON and STEEL  

China’s steel PMI rises in November

China's steel sector purchasing managers' index (PMI) rose on the month in November to 45.4 on an increase in output and demand, but a score below 50 indicated that the sector was still in contraction.

The steel PMI, compiled by the China steel logistics professionals committee (CSLPC), was last at 50 in May and had fallen every month since, before rebounding last month.

November's steel PMI was higher by 4.1 points from October. The steel output sub-index climbed by 1.1 points to 43.4, while domestic new orders sub-index gained by 12.2 points to 43.8.

A rebound in demand last month increased the willingness of steel mills to produce more steel and purchase more raw materials, said CSLPC.

China's real estate demand has remained robust through the year and supported steel prices in November, with supply tightening on slower steel shipments from north to south China as strong winds at northern ports disrupted operations.

The country's overall manufacturing PMI also showed an uptick, rising above the 50 mark for the first time since April to 50.2 in November from 49.3 in October, said the national bureau of statistics.

New construction starts are accelerating and will provide a driving force for demand of steel and other bulk materials, said the CSLPC. It also said that the government is easing further the financing rules for infrastructure projects, which will support steel demand "to some extent".

But the supply pressure could be higher this year than in 2017-2018 as local governments in major steel-producing provinces such as Hebei, Shandong, Shanxi and Henan might not impose winter production cuts on mills and instead rely on production restrictions during periods of higher concentration of pollutants, said the CSLPC. Several mills in these regions already adhere to ultra-low emissions standards, while many non-compliant mills have been shut down, making such winter production cuts less necessary.

There may not be much extra effort to restrict steel output in December, said the CSLPC, which should keep output rates high as mills are mostly profitable.

By Prasenjit Bhattacharya

News No: 7694
Date: 2019/12/02 - 18:42
News Source: Argus Media

China  steel  PMI  CSLPC  Shandong 

Comments:

Leave a Comment:

   
   
   
 

Kobe Steel turns non-standard compressor affiliate in China into subsidiary

Kobe Steel, Ltd announces that it has turned its Chinese affiliate, Wuxi Compressor Co., Ltd., into a subsidiary after acquiring additional shares in the company in April 2020. Based in Wuxi, Jiangsu Province, Wuxi Compressor manufactures designs and sells non-standard (process gas) compressors, a core component used in petroleum refining, chemical and natural gas plants.
 

MMK and SMS group managed to implement targeted commissioning despite extremely difficult conditions

In 2018, Magnitogorsk Iron & Steel Works (MMK), Russia, has awarded an order to SMS group covering the extensive modernization of the finishing mill mechanical equipment and the fundamental revamp of the electrical and automation system of hot strip mill 2500 at the Magnitogorsk site.
 WEEKLY STEEL SCRAP:

Turkey keeps buying, Asia bulk markets go quiet

Turkish steel producers remained active in the market for import scrap in the week ending Friday June 12, while prices for bulk scrap in Japan and Vietnam appear to hit a ceiling as activity slowed.
 

Steel import price recovery persists in South America on stronger demand, currency

Prices for flat-rolled steel imported into South America continued to recover during the week to Friday June 12 as more increases were issued - mainly by Chinese and Japanese mills - for August-shipment cargoes.
 

Amended EU safeguard measures to result in HRC import volume drop, hurt independent distributors, Assofermet says

The proposed changes to existing EU safeguard measures for hot-rolled coil would result in a drop in import volumes and consequently injure independent distribution in Europe, Italian steel distributors’ association Assofermet said in a letter to the European Commission (EC).
 

Indonesia to ask Freeport to build copper smelter

The Indonesian government will ask PT Freeport Indonesia to build a copper smelter in Weda Bay, a newly built metal industrial park in Halmahera, the senior minister overseeing mining said on Friday.
Upcoming Events
Publications
 Mines & Metals

Mine & Business Today

 Scrap & Recycling

Ahangan

Our partners