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[Ferro-Alloys.com] China's steel sector purchasing managers' index (PMI) decreased by 1.6 points from May to 49.3 in June, reflecting slow recovery in the steel industry, according to the China steel logistics professionals committee (CSLPC).

 

Sub-indexes showed that steel production increased but steel demand softened in June, leading to higher steel inventories at mills. Prices for raw materials kept rising while mill purchases slowed on the expectation of lower prices. Steel demand is likely to weaken in July but strengthen later, while steel production would continue to rise on the month but feedstock prices may fall in July, the CSLPC forecasted.

 

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