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.
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. It followed a 13.9-point uptick in the domestic orders sub-index to 53.4 and a rise of 8.3 points to 44.1 for overseas demand. 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.