Peak season demand in steel end-use sectors fell short of expectations in October

The PMI for steel downstream sectors stood at 49.57 points in October, down 0.77 points MoM and 0.46 points YoY. The seasonally-adjusted composite index stood at 48.65, up 0.08 points MoM but down 0.39 points YoY.

In a word, downstream sectors were in normal production last month. Most construction projects were in a rush period towards the end of the year, but fewer-than-expected new projects was monitored on funding constraints and a lack of most companies’ winter storage plans. Among the manufacturing industries, the auto and shipbuilding industries remained resilient. The production index stood at 50.63, down 0.67 points MoM but up 0.89 points YoY. The new order index stood at 48.10 points, down 1.62 points MoM and 2.19 points YoY.