Steel PMI falling for three months

According to the physical union steel logistics professional committee of index of the latest report, in February this year the domestic steel industry PMI index was 39.9%,pipe api 5l grade x52 carbon steel pipe more fell 0.8% last month.This index has been falling for three months, and fell to its lowest level since September 2012, show that the steel industry overall situation is quite serious.

Domestic steel production fell back.In February, the steel industry production continues to fall to 35.2%, from the previous month fell 0.1%, the index has dropped for four consecutive months keep.Shrinkage and purchasing activities related to production, raw materials inventory index for the lowest level in nearly five months.Since the fourth quarter of last year, the domestic crude steel production is declining,elbows carbon steel pipe fitting price in December last year the average daily crude steel output fell to 2.011 million tons, cisa forecast in January this year China's crude steel output of 1.986 million tons a day, fell 1.2%, fell 3.2% year on year;Mid-february the crude steel output of 1.966 million tons a day, fell 4.8%.Pollution is more serious, in hebei province has started this year with action to resolve the steel overcapacity "first shot".The current steel prices have been far below cost, the enterprise production of kinetic energy will increase.

Demand for steel is hard to get rid of the downturn.In February, the new orders index was 32.4%, the iron and steel industry is down 1.1% last month, for six consecutive months is below 50% contraction range.However, the size of the index fell in significantly narrowed,large diameter carbon steel pipe flanges indicated that with the advent of the traditional consumption season, steel demand or to improve, and improve the magnitude of the estimation is relatively limited.Iron and steel industry for new export orders index return to expand the range, display the current steel exports relatively early better.