Optimism is rising in the Chinese steel sector, as the latest purchasing managers' index (PMI) revealed a 5.9 point MoM increase to 51.5 in January, marking an expansion of the sector. The PMI was conducted on January 25 and 26 by Markit for China National Bureau of Statistics. Chinese steel producers have also grown stockpiles of coking coal and iron ore ahead of an expected rise in demand following the end of the Lunar New Year holiday and winter output restrictions. The Argus ICX 62pc seaborne fines price hit at a 20-month high of $83.95/dry metric tonne yesterday, while Chinese buyers have also stepped up coking coal imports over the past few days. Anticipation of a thaw in the US-China trade war is also boosting sentiment.
Optimism is rising in the Chinese steel sector, as the latest purchasing managers' index (PMI) revealed a 5.9 point MoM increase to 51.5 in January, marking an expansion of the sector. The PMI was conducted on January 25 and 26 by Markit for China National Bureau of Statistics. Chinese steel producers have also grown stockpiles of coking coal and iron ore ahead of an expected rise in demand following the end of the Lunar New Year holiday and winter output restrictions. Anticipation of a thaw in the US-China trade war is also boosting sentiment.