Hebei Province steel industry PMI continues to rebound in April 2020

In April, the steel industry PMI of Hebei Province was 48.7%, an increase of 4.4 percentage points month-on-month, and maintained its upward trend for two consecutive months.
 
In April, the new orders index was 45.6%, up 3.9 percentage points from the previous month. In April, China's Manufacturing Purchasing Managers Index (PMI) was 50.8%, although it was down 1.2 percentage points from the previous month, but it was in an expansion range for two consecutive months, indicating that the domestic economy maintained a good recovery momentum and manufacturing activity accelerated.
 
The new export order index was 33.3%, a decrease of 1.5 percentage points from the previous month. According to statistics from Shijiazhuang Customs, in the first quarter, Hebei’s steel exports amounted to 6.23 billion yuan, down 21.3%.
 
The output index was 52.5%, an increase of 10.3 percentage points from the previous month. Due to the implementation of normalized environmental protection production restrictions in some areas, the rebound of downstream demand and the stimulation of industry profits, the production of steel companies has accelerated. According to data from member enterprises of the Provincial Metallurgical Association, in March, the average daily output of crude steel of key iron and steel enterprises in Hebei Province decreased by 1.80%.
 
The finished product inventory index was 45.3%, an increase of 2.5 percentage points from the previous month. Due to a steady rebound in demand, smooth transportation and a decline in transportation costs, steel sales in Hebei's iron and steel enterprises were good, and inventories of finished products continued to decline, but the decline slowed down. It is worth noting that despite the current decline in steel mills and social inventories, the industrial chain inventory is still at a historically high level, which has put greater pressure on the rise in steel prices and the occupation of corporate funds.
 

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