China's Hebei steel PMI picks up to 49.8 in Jan

sxcoal.com Viewpoint,  Price,  Steel Products 2018-02-01 16:49:00


Northern China's steel hub Hebei witnessed its Purchasing Managers' Index (PMI) for steel sector picked up to 49.8 in January from 46.5 a month ago, showed data from Hebei Metallurgical Industry Association, standing for a fourth consecutive month below the 50-point mark that separates growth from contraction, but very close this time.


A major sub-index for new orders stood at 53.8 in January, up 5.9 percentage points from December.


Spurred by winter restocking activities from house builders and other end users, the spot steel market picked up in the second half of the month, with market expectations turning around towards bullishness.


Spot price of rebar (HRB 400 20mm) in Shanghai market stopped the decline at 3,760 yuan/t on January 15 and stood steady around 3,900 yuan/t since January 22. On January 31, the price was stable at 3,890 yuan/t.


The sub-index for new export orders inched up to 36.7 compared with 36.4 a month ago, indicating exports of steel products improved slightly but still remained in the low ebb.


Output sub-index stood at 46.4, up 6.4 percentage points from the month prior. The index's pickup has been mainly driven by a small increase in production out of good profit and heating responsibility from some blast furnaces in the province.


The sub-index for inventories of steel products rebounded by 3.2 percentage points to 35.2 in January, which were mainly put down to poor demand weakened by snow and rain weather approaching the Lunar New Year.


Sub-index for inventories of raw materials was 48.2, an increase of 4.2 percentage points from December, thanks to the winter restocking activities end users took at the current low price levels.


Rebar stocks grew faster than hot-rolled coils during the winter restocking campaign, with a bullish stance the market took on the resumption of building activities in the middle of March or later.


Plate products, with little difference between slack and busy seasons, posted limited increases in end users' stocks.


Looking ahead, the steel market seems dull in the month of the New Year, with no other factors more than supply tightness as production can't come back to normal immediately from the holiday. There is still a period steel mills spend on furnace maintenance after the holiday.


With weakness at both supply and demand ends, the February prices of steel products are expected to stay low with small volatilities.



(Writing by Alex Guo  Editing by Harry Huo)
For any questions, please contact us by inqury@fwenergy.com or +86-351-7219322.

Share this article
Connect with us

Editors Recommendations

1 China's top 3 provinces contribute 69% of raw coal output in 2018 2019-01-23

Northern China's three largest coal bases produced 68.89% of the country's total raw coal in 2018, almost unchanged as compared to January-November's 69.1%, showed data from the National Bureau of Sta

2 China Coal Daily Track (Jan 23) 2019-01-23

Thermal coal Domestic market Production area In Shaanxi, coal prices climbed further as local supply remained tight amid production suspension at local mines. One miner has raised p

3 Shaanxi's Yulin urges steady coal supply during holiday and "two sessions" 2019-01-23

Yulin city, one major coal hub in northwestern China's Shaanxi province, urged in a notice that local mining companies should ensure steady coal supply during the upcoming Lunar New Year holiday and t

4 Chinese spot thermal coal market cools down; traders caution post-holiday drops 2019-01-23

Chinese spot thermal coal market showed signs of cooling down, as factories are closing with the approaching Lunar New Year holiday and the mine accident effect is also dying down. On Jan

5 China import thermal coal prices at 2-mth high as sentiment heats up 2019-01-23

Prices of overseas thermal coal to be sold to China have climbed to a two-month high lately, as foreign miners stayed bullish on supply shrink and better demand from India, though Chinese buying inter

6 China Shenhua 2018 commercial coal output up 0.4% YoY 2019-01-23

China Shenhua Energy Co., Ltd, a listed arm of China Energy Investment Corporation, produced 296.6 million tonnes of commercial coal in 2018, up 0.4% year on year, the company said in a statement issu

7 China's daily crude steel output up 3.5% over Jan 1-10, CISA 2019-01-23

Daily crude steel output of member companies of the China Iron and Steel Association (CISA) rose 3.53% from the previous ten days to 1.84 million tonnes on average over January 1-10, according to the

8 China coal mine safety further improves last yr; death rate below 0.1 person 2019-01-23

China's coal mine safety further improved in 2018, with deaths per million tonnes of coal produced stood at 0.093 person, falling below 0.1 person for the first time ever and down 12.3% year on year,

9 China's steel industry to face tougher challenges under environmental pressure 2019-01-23

Chinese steel industry is expected to face greater challenges in the country's harsher push to ultra-low emission reforms in 2019, which is aimed to better address air pollution.

10 China coastal coal shipping market slides for over 10 days 2019-01-23

China's coastal coal shipping market has been on the decline for 11 days, dragged by low shipment demand as utilities dwelt on high stockpiles on the whole. The freight for 50,000-60,000

Most Read Articles

1 More coal mines ordered to stop production in Shaanxi 2019-01-16

More coal mines are ordered to halt operation for rectification in Yulin city, northwestern China's Shaanxi province after a fatal accident in Shenmu on January 12. Coal mines with blasti

2 Will China coal market strengthen after fatal mine accident? 2019-01-15

A severe coal mine accident happened on January 12 has brought Chinese coal industry into spotlight. Strengthened safety inspection will inevitably lead to a reduction of coal output in the short run.

3 China 2018 coal imports up 3.9%, above expectations 2019-01-14

China imported a total 281.23 million tonnes of coal, lignite included, in 2018, customs data showed, failing to meet the government's earlier expectations of controlling at lose to the 2017 level.

4 Thoughts about Chinese Shenmu coal accident 2019-01-18

One deadly coal mine accident in northwestern China's Shaanxi province on January 12, which took away 21 lives, has shocked the entire market. Beyond sorrow and regret, there are many aspects we sh

5 Indonesian coal miners bullish about near-term market 2019-01-17

Indonesian miners were bullish about the thermal coal market in the near future, traders reported, buoyed by Chinese mine accident, rain-induced supply shortage and Indonesian government policy.

6 China's Menghua railway may barely influence near-term coal shipment layout 2019-01-17

China's long-awaited Menghua railway that connects coal production bases with industrial hub in the South is expected to finish construction and open to traffic before October 1 this year at the soone

7 China's coal remaining reserves & resources exceed 1.6 tln T 2019-01-17

China's remaining reserves & resources of coal reached 1.67 trillion tonnes by the end of 2017, according to a report issued by the Ministry of Natural Resources, up 4.3% from a year ago.

8 Shaanxi Shenmu coal mines halted after accident, propping up local prices 2019-01-15

Seventy private coal mines in Shenmu of Shaanxi province in northwestern China have been ordered to halt production, after roof collapse at a mine in the city caused 21 deaths last weekend.

9 Traders divided on China's pre-holiday thermal coal market 2019-01-18

Participants in Chinese spot thermal coal market were divided in the short-term outlook before the Spring Festival holiday, with some holding back on sales anticipating strong pickups while the others

10 China Coal Daily Track (Jan 17) 2019-01-17

Thermal coal Domestic market Production area Thermal coal prices continued rising at major production areas. A large numbers of coal mines in Shenmu and Fugu of Shaanxi halted produc

Scan to download sxcoal.com mobile APP

X