China: Steel inventories at CISA-affiliated mills decrease in late-Jul'24

The China Iron and Steel Association (CISA) has reported that total steel inventory of key enterprises in late-July 2024 at 16.050 million tonnes (mnt), down by 251,600 t or 1.54% compared to 16.302 mnt in mid-July.

However, the same rose by 1.356 mnt or 9.23% m-o-m against 14.694 mnt in late-June 2024. Moreover, inventory levels rose by 1.563 mnt or 10.79% y-o-y compared with 14.487 mnt in late-July 2023.

Production volumes

The average daily crude steel output of CISA-affiliated mills stood at 1.973 mnt in late-July 2024, a decrease of 8.14% against 2.148 mnt in mid-July. Moreover, output declined by 9% m-o-m compared to 2.168 mnt in late-June 2024. Furthermore, output went down by 7.59% y-o-y against 2.135 mnt in late-July 2023.

The average daily finished steel output stood at 1.978 mnt in late-July, a decrease of 2.83% from 2.037 mnt in mid-July. Moreover, production went down by 8.45% y-o-y.

The average pig iron output stood at 1.789 mnt in late-July, decline of 7.07% against 1.926 mnt in mid-July. Furthermore, output fell by 6.97% y-o-y.

Outlook

Despite a slight decrease in late July compared to mid-July, steel inventory is significantly higher compared to the same period of last year. This suggests weak demand and potential oversupply issues. If demand does not pick up, this can lead to further increase in steel inventory.