In November this year, the purchasing managers' index (PMI) of China's steel sector was 49.2 percent, down 3.5 percentage points compared to the previous month, as announced by the China Steel Logistics Committee (CSLC) which is part of the China Federation of Logistics and Purchasing (CFLP). It is expected to be difficult for China's steel sector PMI to rebound amid the imbalance between supply and demand in the Chinese domestic steel market. In November, the new order index for China's steel sector decreased by 8.9 percentage points month on month to 46.5 percent. Meanwhile, in November the production index for China's steel sector decreased by seven percentage points month on month to 50.1 percent.
The indices in question reflect the traditional seasonal slowdown for China's steel sector. Approaching the end of the year, some steel traders may come under increased pressure from debt repayments and tight capital flow.