<article><p class="lead">China's manufacturing activity expanded in October with a private-sector reading showing its fastest growth in nearly 10 years. </p><p>The purchasing managers' index (PMI) published by private-sector Chinese firm Caixin rose to 53.6 in October, its highest level since February 2011, from 53 in September. A reading above 50 indicates expansion. The major sub-indexes for Caixin's PMI all increased in October. Growth in new orders was the steepest since December 2010. New export orders also continued to expand. </p><p>China's official manufacturing PMI fell slightly to 51.4 in October from 51.5 in September, according to the national statistics bureau (NBS). Caixin surveys fewer, mainly smaller and medium-size companies for its PMI compared with the official NBS index. </p><p>"PMIs remaining above the 50-level threshold in October turned out better than expected, indicating an upwards trend in the coming months, which has fuelled market confidence," a Hebei-based steel mill manager said. "Strong PMI and decreased steel stocks boosted steel markets today." </p><p>The most active futures for rebar rose by 0.87pc to 3,719 yuan/t ($555/t), while hot-rolled coil rose by 0.52pc to Yn3,875/t. </p><p>The NBS sub-indexes for new export orders and imports rose to one-year highs at 51 and 50.8 respectively in October. The sub-index for new orders was unchanged at September's one-year high of 52.8. Its production sub-index fell by 0.1 points from September to 53.9, the third-highest reading in the past year. </p><p>The official PMI has been in expansion above 50 since March and above 51 since July, "indicating manufacturing activity is really warming up", a north China mill manager said. "The effect can be seen in healthy steel demand, which has been a good support for this round of iron ore price rise since 27 October." </p><p>The Argus ICX 62pc fines index rose by $2.30/dry metric tonne (dmt) to $117.45/dmt cfr Qingdao over 26-30 October. </p><p class="bylines">By Kitty Xie and China staff</p></article>
