China: Steel inventories at CISA-affiliated mills decrease in late-May'24
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The China Iron and Steel Association (CISA) reported total steel inventory of key enterprises in late-May 2024 at 14.566 million tonnes (mnt), down by 2.2595 mnt or 13.43% compared to 16.826 mnt in mid-May. However, inventory decreased by 1.3141 mnt or 8.27% m-o-m compared with 15.881 mnt in late-April. Moreover, the same fell by 1.053 mnt or 6.75% y-o-y compared to 15.620 mnt in late-May 2023.
Production volumes
The average daily crude steel output of CISA-affiliated mills stood at 2.1764 mnt in late-May 2024, a decrease of 1.49% against 2.209 mnt in mid-May. Moreover, output edged down by 1.1% m-o-m against 2.199 mnt in mid-April. However, output rose by 3.87% y-o-y against 2.090 mnt in late-May 2023.
The average daily finished steel output stood at 2.237 mnt in late-May, increasing by 5.54% from 2.12 mnt in mid-May this year. Moreover, production rose by 3.84% y-o-y.
The average daily pig iron output stood at 1.9308 mnt in late-May, a decrease of 2.42% against 1.978 mnt in mid-May. However, production inched down by 0.20% y-o-y.
Outlook
This data suggests a cautious but potentially positive outlook for the Chinese steel industry. Decreasing inventory and rising finished steel production point to growing demand, while crude steel production remains steady. Pig iron production points to a wait-and-see approach being adopted by mills likely due to uncertainties in demand.
