Purchasing Managers' Index (PMI) for the Chinese industry has reached its minimum. It amounted to 45.2 points last month. This is the lowest result since July of 2016. This information gave the Chinese organization CFLP Steel Logistics Professional Committee. Assumed, the index defines the expectations and sentiments of market participants. Its definition do every month. This polled the top managers of industrial enterprises (metallurgical and metal trading here). Usually, dozens of them.
In October, the index accounted for 52.1. A decline of 6.9 points per month is pretty sharp. In addition, the largest drop. This refers for the entire period that the calculation of the index. The fact that the November figure came in below 50, indicates the expectation of a recession. In other words, the members of the local metallurgical market waiting for lower prices. It can also appear in the volume of supply and demand.
There is another very important indicator. We are talking about sub-index, which shows the expectations of internal orders. At the end of November it stood at 35.4 points. Last month it stood at 52.3 per. It is also a pretty significant drop in a month. According to analysts, this is due to the suspension of construction projects. Many construction projects in Northern and North-Eastern provinces was suspended. This is because the cold came. But the real reason may be not only that.
As for the Chinese industry as a whole, the PMI was above 50. Compared with October, the index was even slightly increased. In October it stood at 50.1 per item, and in November to 50.2. In the last month expected the decline in foreign orders. In the past have noted improvements in the internal situation.