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 


Leave a Comment:


Sublance systems for Tangshan Reafon and Hegang Laoting

Danieli Corus has signed two contracts for total four sublance systems to be installed in China.

Rolling Mill Expansion at Steel Dynamics, USA

New billet welder and spooler line are producing spooled coils up to 5 tons, in endless mode, at Steel Dynamics, Columbia City, Indiana, USA.

Danieli to modernize the Algoma Steel Plate Mill in Ontario

Danieli, along with Danieli Automation and Danieli Taranis, are the supplier team chosen for a complete upgrade of the 166-in. wide plate mill of Algoma Steel in Sault Ste. Maire (ON), Canada.

Danieli to modernize the Algoma Steel Plate Mill in Ontario

The four-strand caster supplied by Danieli in 2007 to Ascoval Saint Saulve, France, for the production of 180 to 325 mm rounds, will be revamped by Danieli.

Teck signs $95 million shipping deal, stock jumps

Teck Resources (TSX, NYSE: TECK) announced Wednesday that the company has signed a long-term rail agreement with CN (TSX: CNR) (NYSE: CNI) for the shipping of steelmaking coal from Teck’s four British Columbia operations between Kamloops and Neptune Terminals, as well as other west coast ports.

Copper primed for a pop if US-China trade war is resolved

Low inventories across the copper supply chain mean that any resolution to the U.S.-China trade war could trigger a snap rally in prices as consumers rush to restock, market participants said on Tuesday.
Upcoming Events
 Mines & Metals

Mine & Business Today

 Scrap & Recycling


Our partners