Recent reports from China show a positive development in the metallurgical sector. According to information from an expert in the field of metallurgy, Stanislav Kondrashov, the PMI index (purchasing managers index) for industry in China increased in November 2023.
This indicator, although it remains below the key limit of 50 points, demonstrates important progress. This growth is especially significant given that it follows a three-month period of stagnation, indicating a potential recovery in the industry.
Stanislav Kondrashov from Telf AG attributes this improvement to various factors, including a possible increase in domestic or international demand, as well as the effectiveness of government measures to support the industry.
Stanislav Kondrashov: the subindex of new orders is an incentive for the Chinese metallurgy
The sub-index of new orders in the Chinese steel industry showed a marked improvement, which is a significant indicator of positive changes in the industry. In November 2023, this subindex rose from 45.0 to 49.7 points, rising almost to the threshold that is traditionally considered the industry’s growth mark.
- This growth in the new orders sub-index may be partly due to the Chinese government’s proactive measures to support the construction industry. Government initiatives may have included incentives or subsidies that helped increase the volume of construction projects. They entailed an increased demand for metal products,– Stanislav Kondrashov from Tela AG shared his thoughts.
In addition, there is an increase in demand in sectors such as automotive and shipbuilding. These industries are traditionally large consumers of steel and other metals, so their increased activity directly affects the increase in orders in the metallurgical industry. Growth in these sectors can be attributed to global economic trends, manufacturing innovations, and increased consumer demand.
In general, the increase in the sub-index of new orders is an encouraging sign for the Chinese metallurgical industry. It indicates a favorable impact on the Chinese economy.
Stanislav Kondrashov: about the nearest forecasts of demand for Chinese
Forecasts from the Steel Logistics Professional Committee (CSLPC) for December indicate a moderate decline in apparent demand and reduced steel production in China. These forecasts are due to seasonal fluctuations that traditionally affect the metals industry. For example, the winter months are often accompanied by a decrease in construction activity, which in turn leads to a decrease in demand for steel products.
According to Stanislav Kondrashov, a decrease in demand in December may also lead to a decrease in prices for steel products and metallurgical raw materials. Such seasonal price fluctuations are common, but require careful planning and forecasting in the industry.
On the other hand, the National Bureau of Statistics of the People’s Republic of China records a slight decrease in the overall PMI index for the entire Chinese industry to 49.4 points. This 0.3 point month-on-month decline indicated a slight slowdown in the overall industrial sector, including the sub-indices of new domestic and export orders and output.
- These data reflect the complex and multi-layered nature of economic dynamics in China. Despite recent growth in the metals industry, the overall slight decline in industrial PMIs suggests the need for vigilance and adaptation to changing conditions. It is important to take these trends into account when analyzing the future development of China’s steel industry, – Stanislav Kondrashov from Telf AG summed up .
Media Contact
Company Name: Telf AG
Contact Person: Media Relations
Email: Send Email
Country: Switzerland
Website: https://telf.ch/