[Ferro-Alloys.com] As announced by the China Steel Logistics Committee, which is part of the China Federation of Logistics and Purchasing, in October 2012, the purchasing manager index of China's steel sector was 52.7%, up by 9.2 percentage points as compared to the previous month. Accordingly, for the first time since April 2012, the index exceeded the watershed of 50% in October 2012, indicating an expansion in activity levels.

October is traditionally a strong period for steel consumption in China. Increasing investment in infrastructure construction in the given month boosted steel demand in China. In October 2012, the new order index for China's steel sector increased by 13.8 percentage points month on month to 55.4%.

Meanwhile, in October the production index for China's steel sector increased by 17.4 percentage points month on month to 57.1%.

Also in October 2012, the purchase volume index for China's steel sector was 53.5%, indicating a month on month increase of 17 percentage points, while the raw material inventory index stood at 46.8%, up 5.8 percentage points compared to September 2012.