China's steel manufacturing PMI declines in July
China's steel sector is slowing as market demand and business activity weakened in July, Xinhua news agency reported on Friday.
The purchasing managers' index (PMI) for the Chinese steel industry for July was 47.9, down 0.3 percentage points from June, according to the CFLP Steel Logistics professional committee.
An index reading above 50 indicates expansion, while a reading below indicates sector contraction.
Sub-indices for manufacturing and commercial activities, purchasing, imports and stocks of raw materials - all remained in the reduction zone.
Growth in demand in the steel market also slowed as the new orders index dropped 2.1 percentage points from June, as construction activity slowed down due to bad weather.
The price of metallurgical raw materials is still growing. The purchasing price index for raw materials reached 66.5, for the third consecutive month above 60 percent.
The committee expected steel production to pick up in August as weather conditions improved and demand for steel increased, but the price of steel in China is likely to face many uncertainties.