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      Text:AAAPrint
      Economy

      China's steel industry continues to weaken

      1
      2015-06-02 08:53Xinhua Editor: Gu Liping

      China's steel industry is still struggling with overcapacity with few signs of recovery, trade association statistics showed on Monday.

      Steel industry PMI in May dipped 5.8 points to 42.4 percent, a 16-month low, according to CFLP Steel Logistics Professional Committee.

      The PMI reading translates into China's steel industry having been in recession for 14 months.

      Chinese steel companies been trying to off-load stock amid the economic slowdown, but the sluggish real estate sector is dragging the industry down.

      According to a committee report, steel firms are beset by high inventories.

      Steel makers have cut production, but if pace is less than expected, steel prices remain low, the report said.

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