China's steel purchasing Managers' index (PMI) hit 47.9 in March, or 0.7 basis points on a month-on-month basis, as domestic steel demand recovers and steel production declines due to pollution controls. The official index compiler -CFLP Steel Logistics Professional Committee (CSLPC) - made the comments in a version published on March 31.
"Last month, China's domestic steel prices spiraled upward and raw material prices retreated from their respective highs as domestic demand recovered modestly and steel production declined slightly due to constraints imposed by pollution controls," CSLPC concluded. For April, "steel prices in China are likely to remain high, while iron ore prices are likely to continue to weaken."