China’s official manufacturing purchasing managers’ index (PMI) in April fell to 51.1 from 51.9 in March, data from the National Bureau of Statistics (NBS) revealed.
Many global automakers are facing production cuts due to shortage of semiconductor chips used in vehicles. Amid severe shortage of shipping containers, international freight rates have increased while demand in overseas markets was impacted due to resurgence of COVID-19.
Steel PMI in China dropped for the second successive month in April by 2.5pc to 45.4pc, staying in contraction zone for almost a year, according to the data published by CFLP Steel Logistics Professional Committee (CSLPC).
Despite this, Chinese finished steel prices in the physical market have remained strong. Factory activity in April expanded at the fastest pace in four months despite high input costs.
In the services sector, activity expanded for the 14th straight month, but at a slower pace, dragged down by the sub-index for construction activity.
($1=CNY6.47)