Hebei's steel PMI back in expansion zone in August

The Purchasing Managers Index (PMI) for the steel industry in North China's Hebei province – the country's top steel production base – rebounded by 9.2 points on month to reach 51.2 in August, putting it back above the 50-point threshold that separates expansion from contraction after hovering below the mark for two consecutive months, according to new data released by the Hebei Metallurgical Industry Association.

The re-entry into the expansion zone signaled a recovery in sentiment among steel buyers. Notably, the sub-index for new orders received by steel mills in Hebei spiked by 12.2 points from July's 37.8 to notch 50 in August, as downstream buyers from manufacturing sectors such as automobiles, home appliances and construction machinery began to replenish their input inventories ahead of the