China: Steel inventories at CISA-affiliated mills fall in late-Mar'24

The China Iron and Steel Association (CISA) reported total steel inventory of key enterprises in late-March 2024 at 18.427 million tonnes (mnt), a decline of 1.106 mnt or 5.66% compared to 19.523 mnt in mid-March. Moreover, inventory went up by 407,500 t or 2.26% m-o-m compared with 18.020 mnt in late-February and was also up 6.8% y-o-y or by 1.177 mnt compared to 17.250 mnt in late-March 2023.

Production volumes

The average daily crude steel output of CISA-affiliated mills stood at 2.121 mnt in late-March, an increase of 3.63% from 2.048 mnt in mid-March. Also, output inched down by 0.4% m-o-m against 2.13 mnt in late-February. In addition, output saw a decline of 6.14% y-o-y against 2.260 mnt in late-March 2023.

The average daily finished steel output stood at 2.117 mnt in late-March, rising 7.76% from 1.965 mnt in mid-March this year. However, production decreased by 6.53% y-o-y.

The average daily pig iron output stood at 1.866 mnt in late-March, increasing 1.63% m-o-m from 1.836 mnt in mid-March. However, production declined by 6.96% y-o-y.

Outlook: China's Ministry of Industry and Information Technology (MIIT) is reportedly planning a meeting with major steel companies to discuss challenges facing the industry. This symposium aims to find solutions for smooth operations and long-term growth. Market analysts believe the discussions could lead to newer policies, including production cuts and stricter enforcement against illegal production, to strengthen the steel sector.