China Steel PMI Dips to 51.2% in April 2026
China Steel Logistics PMI Dips to 51.2% in April 2026; May Market Expected to See Range-Bound Trading Amid Supply-Demand Rebalancing
Source: China Metal Material Circulation Association (CMMCA) & Lange Steel
According to data released by the CMMCA and Lange Steel, the Steel Circulation Purchasing Managers' Index (PMI) stood at 51.2% in April 2026. This marks a decrease of 2.2 percentage points from the previous month, indicating a high-level pullback within the expansionary range and reflecting that the traditional "peak Silver April" season fell short of market expectations.
Looking ahead to May, the domestic steel market will focus on the rebalancing of supply and demand dynamics. A post-holiday concentration of restocking by end-users and traders is anticipated, coupled with accelerated infrastructure funding implementation. These factors are expected to drive marginal improvements in construction material demand.
After mid-May, the market will gradually transition into the traditional off-season. However, resilient demand from the manufacturing sector will help keep hot-rolled coil (HRC) demand stable. Meanwhile, supply-side capacity release remains relatively limited, which is expected to marginally ease supply-demand tensions.
On the cost front, iron ore prices remain relatively firm, and the third round of coke price increases has already begun, providing significant bottom-line support for steel prices from the cost side. In summary, the domestic steel market in May 2026 is expected to operate in a range-bound and consolidating pattern.
