SMM steel downstream PMI in contraction territory in February as the Chinese New Year holidays disrupted both construction and manufacturing activities 

The PMI for domestic steel downstream sectors stood at 43.31 points in February, down 3.34 points MoM and 9.87 points YoY. The seasonally-adjusted composite index stood at 49.95, down 0.18 points MoM and 10.68 points YoY.
On the whole, the operating rate of downstream industries dropped significantly due to the Chinese New Year holidays. After the holiday, manufacturing companies such as shipbuilding and automobiles resumed work quickly, while the construction industry resumed work slowly, and the resumption time in north and south China varied greatly due to impact of bad weather. The production index stood at 35.8, down 8.85 points MoM and 19.46 points YoY. The index for new orders stood at 45.59, down 0.87 points MoM and 7.43 points YoY.