Hebei province's steel sector purchasing managers' index (PMI) fell 6.6 percentage points month on month to 46.5% in June 2026, dipping below the 50 cut-off point for economic performance, data from the Hebei Metallurgical Industry Association showed.

The province's steel industry exhibited a pattern of weakening supply and demand in June. Seasonal demand slowdown and cost pressures curbed steel output, with the production index falling 4.9 pps from a month earlier to 50.0%.

The new orders index dropped 14.7 pps month on month to 39.0%. However, new export orders edged up 1.1 pps to 39.1%, as easing geopolitical tensions helped stabilize energy and commodity price volatility, improving the competitive edge of Chinese steel.

Downstream demand showed structural divergence. While high-end manufacturing provided some support, it was insufficient to absorb inventory build-up, pushing the finished steel inventory index up 5.5 pps month on month to 48.7%.

The ex-works price index for finished steel stood at 25.6% in June, down 52.4 pps from a month earlier, pressured by seasonal demand weakness and inventory overhang.

The raw material inventory index fell 2.5 pps month on month to 51.2%, as steel mills adopted as-needed purchasing amid squeezed margins. The raw material purchase price index declined 12.2 pps to 63.4%.

Experts described the province's steel sector in June as being in a fragile equilibrium of supply contraction, cost support and diverging product profitability.