Chinese Steel End-Use Sectors In Contraction Territory In November

The PMI for steel downstream sectors stood at 49 in November, down 0.57 MoM and 0.39 YoY. The seasonally-adjusted composite index stood at 48.75, up 0.11 MoM and down 0.32 YoY. On the whole, manufacturing production is relatively stable this month, while the construction and infrastructure industry is greatly affected by the weather. The temperature in some areas has been too low to carry out normal construction, while areas with relatively warm temperatures have accelerated the pace of construction. This month's new orders index still shows a downward trend. Engineering machinery orders have been significantly dragged down by the construction industry. The automobile industry has entered the year-end rush stage, and new orders continue to grow. This month's production index was 50.47, down 0.16 month-on-month and up 1.34 year-on-year. The new orders index was 46.31, down 1.79 from the previous month and down 3.81 from the same period last year.