The purchasing managers’ index (PMI) for the steel sector in China’s Hebei Province fell to 43.7% in October 2026, down 4.3 percentage points from the previous month. The index remained below the 50% mark that separates contraction from growth, the Hebei Province Metallurgical Industry Association said.
The new orders index dropped 10.9 points to 34.2%, while the production index fell 2.5 points to 46.3%. The new export orders index held steady at 54.8%. As the gap between domestic and international prices narrowed and export margins thinned, suppliers shifted from aggressively seeking orders to taking them in line with demand, the association said.
The ex-works price index for finished steel stood at 25.6%, down 20.7 points month on month. The raw material purchasing price index fell 25.6 points to 35.4%, while the raw material inventory index rose 3.7 points to 43.9%. The finished steel inventory index remained at 50%.
Coking coal and iron ore prices declined in October, lowering steelmakers’ production costs and weakening support for steel prices. With demand subdued, the market remained in a weak supply-demand balance. Steel prices may soften further in November amid the traditional seasonal lull.
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