Demand for construction steel cooled in November, while steel demand from manufacturing sector remained steady

The PMI composite index for domestic steel downstream sectors in November 2024 was 49.94, down 0.42 MoM, and up 0.93 YoY. Seasonally adjusted, the composite index was 49.54, up 0.13 MoM, and up 0.91 YoY. Overall, the steel downstream industry last month showed strong manufacturing and weak construction. Due to weather impacts, construction and infrastructure project progress slowed, and north China entered the winter construction phase, leading to generally weak steel demand. However, the manufacturing sector continued to perform well, driven by equipment upgrades and ongoing trade-in policies, resulting in increased production and sales. Last month's composite production index was 50.45, down 1.04 MoM, and down 0.02 YoY. The new orders index was 49.67, down 0.29 MoM, and up 3.36 YoY.