Steel Consumption in Chinese Downstream Sectors Appears Strong in November

SHANGHAI, Dec. 3 (SMM) – Conditions in major steel downstream sectors varied, but the improvement in new orders helped the steel PMI rise slightly above 50 in November, one Steelease survey showed. 

 

Based on a recent Steelease survey of major steel downstream industries, the steel PMI for November was 50.38, up 1.19 MoM and 1.6 YoY. After seasonal adjustments, the reading for November was 50.23, now up 1.33 MoM and 1.7 YoY. 

 

The seasonal factor continues to drag down operating rates and employment in the construction sector. Improvements in the steel structure sector, however, helped prevent the construction PMI from falling significantly in November. Some manufacturing sectors staged a surge in output ahead of the year’s end, which also contributed to the slight expansion in manufacturing activity during November. Business activity in the automobile sector also expanded in November, driven by passenger vehicle manufacturers’ need to reach production targets and the introduction of 4th-phase national standard for automobile gasoline. New orders received by shipbuilders boosted that sector’s performance, while the home appliance sector also began to expand in preparation of the coming high demand period.  

 

In summary, business activity in major downstream steel consuming sectors expanded in November, and despite mixed performances by sector, steel demand during the winter months should be positive.