The purchasing managers' index (PMI) tracking China's iron and steel sector fell 1 percentage point month on month to 43.7 percent in September, ending the second consecutive month of increases, according to the latest data released by the China Federation of Logistics and Purchasing(CFLP).
The figure has been under the 50-percent level demarcating growth from contraction for the 17th consecutive month, reflecting the continuously sluggish industrial climate. The sub-index for steel production in September was 44.6 percent, down 2.9 percentage points from a month earlier. It has been under the 50-percent level demarcating growth from contraction for the 13th consecutive month.
In September, the sub-index for new orders edged up 0.8 percentage points month on month to 40.7 percent, showing the lackluster demand from downstream sectors. The sub-index for new export orders was 40.7 percent in September, down 13.8 percentage points month on month, hitting the lowest in recent five months. Meanwhile, sub-index for the finished product stocks was 49.3 percent, down 0.5 percentage points from a month before, indicating that domestic steel mills' "de-stocking" policies have paid off.
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