China's steel industry Purchasing Managers' Index (PMI) reached 47.9 in March, or dropped by 0.7 basis points month-on-month. This was due to the gradual recovery of domestic steel demand and the decline in steel production caused by pollution control. The official index compiler -CFLP Steel Logistics Professional Committee (CSLPC) - made comments in the version released on March 31.
CSLPC concluded: "Last month, due to a moderate recovery in domestic demand and a slight decline in steel production constrained by pollution control, domestic steel prices in China spiraled up, and raw material prices fell back from their respective highs." For April, "China's steel prices may remain at a high level, while iron ore prices may continue to weaken."