Hebei province's steel industry purchasing managers' index (PMI) rebounded above the expansion threshold in August 2026, rising 9.2 percentage points month on month to 51.2%, according to data released by the Hebei Metallurgical Industry Association.

The output sub-index climbed 17.0 percentage points from the previous month to 52.4%. The sharp month-on-month gain was attributed to the seasonal transition from slack to peak demand, with steel prices rebounding and blast furnaces that had undergone maintenance gradually resuming operations, alongside a low output base in July.

Demand-side indicators also improved. With growing expectations of peak-season demand, downstream sectors including automobiles, home appliances and construction machinery entered a pre-season stocking phase, lifting the new orders sub-index by 12.2 percentage points month on month to 50.0%.

Export orders showed modest improvement, with the new export orders sub-index edging up 2.0 percentage points from a month earlier to 47.8%, supported by recovering overseas demand for flat steel products and a clear export advantage for domestic mills.

Finished steel inventories remained elevated amid a weak supply-demand balance in the flat steel market, with the finished goods inventory sub-index rising 1.4 percentage points month on month to 47.3% in August.

Supported by cost underpinning, policy tailwinds and strengthening peak-season expectations, the finished steel ex-factory price sub-index surged 29.3 percentage points from the previous month to 54.9%.

Raw material purchase price sub-index climbed 30.5 percentage points month on month to 69.5% over the same period, while the raw material inventory sub-index stood at 50.0%, up 7.3 percentage points.

Analysts noted that Hebei's steel industry in August maintained a stable pattern featuring controllable supply elasticity, month-on-month demand recovery and resilient cost support.