Chinese Steel Sector PMI at 15-Month High
China’s steel sector Purchasing Managers’ Index (PMI) climbed to the highest level since April 2016 in July at 54.9, up from 54.1 in June, according to the China Federation of Logistics and Purchasing. A rise in domestic steel prices has supported profitability at Chinese mills and encouraged producers to maximise output.
By contrast, the country’s manufacturing PMI slipped to 51.4 in July, down from 51.7 in June, according to the National Bureau of Statistics. However, this was still the twelfth consecutive month the index has remained above the 50 benchmark that separates expansion from contraction, the longest such stretch since 2014.