In March this year, the purchasing managers index (PMI) for the Chinese steel sector was at 44.3%, down 3.0 percentage points compared to February, as announced by the China Steel Logistics Committee (CSLC), which is part of the China Federation of Logistics and Purchasing (CFLP).

In March, the production index for the Chinese steel sector stood at 45.4%, 3.8 percentage points lower than that recorded in February amid the strict Covid-19 restriction measures.

At the same time, the raw material inventory index declined by 4.5 percentage points month on month to 38.2 %.

Meanwhile, the purchase price index of raw materials in the Chinese steel sector increased by 7.1 percentage points month on month to 65.2 %.

As for April, though the sporadic outbreak of Covid-19 cases will continue, steel prices may move up as the traditional peak season for construction activities will begin, which will boost the demand for steel.