PMI for Steel Industry Rebounds in April, Broker

BEIJING, May 5 -- The Purchasing Manager Index (PMI) for the steel industry reversed the downward trend in April, according to a report by China Jianyin Investment Securities Co. Ltd, a local broker.

    The PMI for the steel industry came to 50.3 this April, indicating that the industry is still at low but beginning to rebound, the report said.

    It estimates the index will make a turn for the better in both May and June, but at a moderate pace.

    April's sub-index for the inventory of finished steel products dropped from a peak at end-March, with inventories of long steel falling faster than steel sheets. The inventories of raw materials for steel also declined. The inventory of iron ore was maintained at between one and two months, while that of coking coke, half a month.

    The sub-index for new orders surged from 41.1 percent in March to 49.3 in April, signaling a warming up in domestic and external demand, albeit there was only a moderate rise in export orders from 27.7 to 29.5.

    The reading for output showed a climb to 54.8, which will exert great pressure on supply and create limited upward room for price hikes, the report assumes.

    (Source: chinamining.org)