Macquarie: Chinese steel entering “crisis”

Monday 2 November 2015

The China steel PMI was out over the weekend and is not well. Here are the major numbers for this year:

	PMI	Output	New Orders	New export orders
Jan-15	43	41.5	34.2	35.6
Feb-15	45.1	41.5	43.4	43.4
Mar-15	43	39.2	45.3	44.1
Apr-15	48.2	49.4	49.4	40
May-15	42.4	40.7	37.6	43.7
Jun-15	37.4	34.2	27.9	50.7
Jul-15	41	41	36.6	56.1
Aug-15	44.7	47.5	39.9	54.5
Sep-15	43.7	44.6	40.7	40.7
Oct-15	42.2	43.1	37.5	37.9

And the chart:

This index is very volatile but the unseasonable drop in new export orders is a concern and suggests the Chinese export outlet is under pressure as global growth struggles and protections close in on the dumping.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.