Tuesday, May 5, 2009

Chinese Steel Purchasing Index Showing Signs Of Revival

The Purchasing Manager Index (PMI) for the Chinese steel industry reversed its downward trend in April, according to a report by China Jianyin Investment Securities Co. Ltd, a local broker.

The PMI for the steel industry came to 50.3 this April, indicating that the industry is still at low but beginning to rebound, the report said.

It estimates the index will make a turn for the better in both May and June, but at a moderate pace.

April's sub-index for the inventory of finished steel products dropped from a peak at end-March, with inventories of long steel falling faster than steel sheets. The inventories of raw materials for steel also declined. The inventory of iron ore was maintained at between one and two months, while that of coking coke, half a month.

Source: TMC News

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