China steel industry PMI falls 5.3 points to 42.5 as weak demand causes problems - China report

According to a report recently released by the China Steel Logistics Federation's Expert Committee on Steel Logistics, China's steel industry Purchasing Managers' Index (PMI) fell 5.3 points from the previous month to 42.5 in July, the lowest level in a year.
Looking at the changes in the index by item, demand in the domestic steel market is declining overall. In addition, while the production index and the raw materials and steel product price index all declined, the stock price index also declined.
The inventory index is rising. Steel demand is expected to remain at a low level in August, and raw material prices are also expected to fall further.
According to the report, steel demand in July appeared to be on the rise early on, but gradually began to decline at an accelerated pace.
It was expected that the rainy season would end in East China in July and demand would gradually increase, but the trend of high temperatures and heavy rains continued, affecting work at construction sites. This caused demand to decrease again.
The index was down 9.1 points from the previous month to 40.3. China's steel industry has been in a difficult situation since the beginning of this year due to sluggish demand. Looking at the monthly steel PMI, April and May were somewhat stable.
This is only a reversal of the trend, with other months seeing declines or low levels.