China’s Steel Sector PMI Rises to 50.6% in April

China’s steel industry showed signs of recovery in April, with the Purchasing Managers Index (PMI) reaching 50.6%, according to the China Steel Logistics Committee under the China Federation of Logistics and Purchasing. This marks a 4.6 percentage point increase compared to March.

The new order index also saw a notable rise, climbing to 51%, up by 9.9 percentage points month on month. Production activity strengthened as well, with the production index reaching 50.8%, a 3.7 percentage point increase from March.

Meanwhile, the raw material purchase price index dropped sharply to 22.2%, falling 13.2 percentage points from the previous month. The inventory index for finished steel declined to 35.7%, down by 14.9 percentage points.

Looking ahead to May, demand for finished steel is expected to grow, potentially driving prices higher. Raw material costs may also see a slight increase. However, ongoing global geopolitical tensions could introduce significant volatility to ferrous metal markets.