Email a friend
  • To include more than one recipient, please separate each email address with a semi-colon ';', to a maximum of 5

  • By submitting this article to a friend we reserve the right to contact them regarding AMM subscriptions. Please ensure you have their consent before giving us their details.

China’s steel market outlook clouded

Jan 02, 2014 | 11:59 AM |

Tags  China steel, steel outlook, manufacturing PMI, steel PMI, HSBC Bank, Qu Hongbin, steel industry

SHANGHAI — China’s economic growth showed some signs of slowing down in December, clouding the country’s steel market outlook somewhat even though the economic data remained in expansionary territory.

The HSBC manufacturing PMI for China registered a final reading of 50.5 points for December, unchanged from an earlier flash reading but down slightly from November’s 50.8 points, according to data published Jan. 2.

The moderation of HSBC’s PMI for December was mainly due to slower output growth. However, December marked the fifth month in a row that the bank’s PMI remained above 50, thanks to a steady increase in new orders, HSBC Bank (China) Co. Ltd. chief economist Qu Hongbin said.

"The recovering momentum since August is continuing into 2014. ... With inflation still benign, we expect the current monetary and fiscal policy to remain in place to support growth," Qu said.

China’s official PMI for the manufacturing sector was 51 points in December vs. 51.4 points the previous month, according to National Bureau of Statistics (NBS) data released Jan. 1. This was the first time that the official manufacturing PMI saw a month-on-month decline since June 2013. However, the December figure also marked the 15th consecutive month above 50 points, a level that indicates growth, NBS said.

Meanwhile, the steel PMI for December was 47.7 points, down 1.3 points from November and the fourth straight month below 50 points, an indication that the industry remained under pressure, according to data released by the China Federation of Logistics & Purchasing (CFLP).

"The weaker economic data, along with the lower list prices, has dampened market sentiment and disappointed those who wished for a good start to the year," a Beijing-based analyst said.

A version of this article was first published by AMM sister publication Steel First.

Latest Pricing Trends Year Over Year


How will the US Treasury Department’s sanctions against UC Rusal affect the US downstream aluminium sector?

They will have a severe impact; companies might go out of business.
They will have a limited impact, but there will be some disruptions
They will have no impact, business will be unaffected

View previous results