Global Times reported that the purchase management index (PMI) for China's steel distribution sector dropped 5.1 percentage points month-on-month to 45.2 percent in November, which indicates that steel prices may decline further in the future, data from Beijing Lange Steel Information Research Center showed Wednesday.
Lange Steel said nearly one-third of steel traders are planning to reduce procurement, as demand is still weak.
A PMI reading above 50 percent indicates industry expansion, while a reading below 50 indicates contraction.