Operating conditions at global steel users deteriorated at a softer pace in March, after February saw the sharpest decline in almost ten years.
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Output and new orders dropped at modest rates, while employment was unchanged and selling prices increased slightly.
The seasonally adjusted Global Steel Users Purchasing Managers Index (PMI) climbed from 47.1 in February, a near decade low, to 49.3 in March, signalling the weakest deterioration in operating conditions in four months.
Output continued to fall at global steel users, although the latest downturn was the joint-softest in this period.
A key factor was a markedly slower contraction in activity at Asian steel users, as fewer firms reported weaker demand.
European users saw another decline in output, while US users failed to increase production for the first time in eight months.
New orders at steel users worldwide dropped at a markedly reduced pace in March, as the respective seasonally adjusted index rose to a four-month high.
Similarly, new export orders fell at the slowest rate since October 2018.
Notably, European users saw another sharp decline due to lower sales in the automotive industry and Brexit uncertainty.
By comparison, US steel users pointed to the first increase in new orders for three months, partly down to greater machinery sales.
Meanwhile, employment at global steel users was unchanged in March, after six successive months of reduction.
Some companies raised job numbers in order to increase capacity, whereas others curtailed employment as new orders declined.
The quantity of purchases made by steel users deteriorated at the end of the first quarter.
However, in line with demand, the contraction was notably weaker than in February.
Stocks of pre-production goods also fell at a slower rate, while stocks of finished goods dropped fractionally.
March survey data recorded a third consecutive monthly rise in output prices at global steel users.
Though marginal, the pace of increase was the quickest in this period.
This was partly due to the first rise in charges set by Asian users since last October.
Meanwhile, input prices increased at a solid, but relatively cool rate in March.
Panellists registering higher costs linked this to mark-ups of steel, oil and other raw material prices.
In addition, some US users highlighted tariffs as a key influence on inflated costs. ■