According to the Hebei Metallurgical Industry Association, in October this year, Hebei's steel industry PMI was 45.4%, down by 5.7 percentage points from the end of the previous month and ended the five-month expansion.
It is reported that in October the new order index was 47.9%, down 2.0 percentage points, the downstream industries affected by environmental protection policies, the decline in demand led to the decline in new orders. The new export orders index for October was 46.4%, up by 2.1 percentage points qoq. The output index for October was 38.5%, down 15.4 percentage points qoq. In addition, blast furnace operating rate in Hebei Province in October continued to decline, the operating rate of varieties of rolling lines decreased sequentially, of which the thread, profile capacity utilization decreased significantly, plate production capacity utilization steady down.
Hebei iron and steel industry PMI fell mainly due to industry supply and demand are declining, especially in the heating season environmental impact of limited production, Hebei steel production dropped more than orders, steel inventories remain low, raw material costs Weakening support, downward pressure on steel prices increased. Looking forward to November, the comprehensive environmental protection limited production in North China during the heating season will restrain the supply of steel products in Hebei Province, which will further weaken the downstream demand. Meanwhile, raw material prices continue to decline, and the market is expected to be overly pessimistic , Steel prices continue to fluctuate.