Steel Downstream Industries Continue to Purchase on As-Needed Basis

SHANGHAI, Mar. 27(SMM) - According to a recent Steelease survey, transportation and infrastructure construction PMI was 55.12 in March, up 3.40 MoM, but down 0.76 YoY. As most enterprises had been closed in February, downstream production restarted very late this year. New orders increased, but modestly compared to forecast. That is because the approval of new projects was affected due to the merger between the Ministry of Railways and Ministry of Communications. Enterprises in Liaoning reported they were unable to receive approval and capital from related departments. Besides, after the NPC and CPPCC, personnel and policies of local governments were also adjusted. Some enterprises reported new projects have been approved, but investors have yet to require them to start operation.
 
As market prices have been falling after the Chinese New Year holiday, downstream buyers were not in a hurry to purchase goods, and mainly bought on an as-needed basis. According to downstream enterprises, environmental protection inspections will also affect them this year.