China: Steel inventories at CISA-affiliated mills decline in late-Jun'24
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The China Iron and Steel Association (CISA) reported total steel inventory of key enterprises in late-June 2024 at 14.694 million tonnes (mnt), down by 1.731 mnt or 10.54% compared to 16.425 mnt in mid-June. However, inventory edged up by 127,400 tonnes (t) or 0.87% m-o-m compared with 14.567 mnt in late-May 2024. In addition, the same went down by 86,000 t or 0.58% y-o-y compared to 14.78 mnt in late-June 2023.
Production volumes
The average daily crude steel output of CISA-affiliated mills stood at 2.168 mnt in late-June 2024, a decrease of 0.8% against 2.185 mnt in mid-June. Moreover, output edged down by 0.4% m-o-m against 2.176 mnt in late-May. Furthermore, output went down by 3.49% y-o-y against 2.246 mnt in late-June 2023.
The average daily finished steel output stood at 2.284 mnt in late-June, up by 8.86% from 2.098 mnt in mid-June this year. However, production inched down by 0.97% y-o-y.
The average daily pig iron output stood at 1.937 mnt in late-June, edged down by 1.17% against 1.961 mnt in mid-June. Moreover, production went down by 4.5% y-o-y.
Outlook:
There are signs of potential improvement in demand for finished steel products, but overall production remains sluggish compared to the last year. Moreover, inventories are also coming down. Chinese steel industry is waiting to see a more sustained rise in demand before ramping up production significantly.
