Steel PMI up to 44.7%
According to the report released by CFLP Steel Logistics Professional Committee on Sep 1st, PMI of Chinese steel industry rose to 44.7% with 3.7 percentage points growth comparing with the data in July.
MPI’s comments: PMI of the steel industry was maintained below 50% in the last 17 months, which represented a continuous downturn. A reading of 50 or above indicates expansion, while a reading below that level indicates contraction. Although situation of the steel industry kept the same in general, there were still some positive changes. The market demand is expected to be improved, and steel price will be stabilized gradually.
26 Listed Steel Enterprises Lost 10.7 billion in the First Half
Against a continuous drop of steel price, performance of listed steel enterprises deteriorated further. The loss of 26 listed steel enterprises was totally 10.691 billion yuan.
MPI’s comments: In the past 5 years, the steel industry showed a seasonal downturn in demand, which resulted in inevitable drop of profitability whatever variations of other factors such as stop of supply expansion, unexpected drop of inventories, policy interventions etc.
