OREANDA-NEWS. May 11, 2012. China steel PMI returned to 55.7 percent, a level that indicates the trend of expansion, in April, according to the latest report by the Steel Logistics Committee of China Federation of Logistics & Purchasing. Oversupply remained a problem as output was increasing ahead of a recovery in demand.

The steel production index rose by 13.8 percentage points from March to 60.3 percent. Seasonal demand prompted the strong performance of the new order index, which has been at the point of further expansion for two months. But the new export order index fell after three months of rapid growth.

As of the end of April, steel inventories held by distributors continued to drop, but destocking activity was not as obvious as seen in the past years.