MNI BRIEF: China Steel PMI Remains Above 50 In October
MNI (BEIJING) - Downstream demand for steel picked up modestly in October, Shanghai Metals Market, a commodity data provider said on Thursday ,as the firm’s PMI for end-use sectors reached 50.35, up 0.31 percentage points m/m and 0.78 y/y.
Steel demand was supported by steady progress in construction and infrastructure, with the manufacturing sector continuing the strong momentum from August, benefiting from equipment upgrades and the trade-in policy, the survey showed.
Chinese steel prices in Q4 are expected to increase 10% q/q on average as manufacturing demand picks up and despite recent disappointing stimulus measures, but further data and more certainty on fiscal support is needed to ensure a sustainable rebound, local analysts told MNI. (See MNI:Limited Scope For China Q4 Steel Demand Recovery)