Half-month steel market talk: PMI releases stabilization signal, steel market fluctuates in May

According to data released by the National Bureau of Statistics, China's manufacturing purchasing managers' index (PMI) was 50.4% in April 2025. Although it fell slightly from the previous month, it was still above the boom-bust line, indicating that the manufacturing industry as a whole maintained an expansionary trend. Among them, the performance of steel-related industries was differentiated, which had a certain impact on the steel market in May.

The PMI of the steel industry fell back to 49.8%, falling back into the contraction range, indicating that industry confidence and order activity have weakened. The slowdown in demand in the construction and real estate industries has put short-term pressure on steel consumption; while the manufacturing sectors such as machinery and automobiles are relatively stable, and export orders have shown slight support.

On the supply side, the blast furnace operating rate is at a high level, but some steel mills plan to overhaul in May due to profit contraction, and steel supply may be tightened in stages. At the same time, the price of raw materials is firm, providing certain cost support for steel prices.

On the whole, the steel market in May is expected to show a "weak shock" trend, and steel prices will lack upward momentum, but due to supply adjustments and cost support, the overall market does not have a basis for a deep decline.

Industry insiders suggest that downstream companies can purchase at low prices appropriately, and traders should control inventory, pay close attention to changes in policies and demand, and flexibly adjust their business strategies.