China: Steel inventories at CISA-affiliated mills increase in early Nov'24
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The China Iron and Steel Association (CISA) has reported that total steel inventory at key enterprises reached 13.66 million tonnes (mnt) in early-November 2024. This represents an increase of 20,000 tonnes (t) or 0.1% from 13.64 mnt in late-October 2024. Moreover, inventory levels decreased by 1.07 mnt or 7.3% m-o-m against 14.73 mnt in early-October 2024. Furthermore, compared to early-November 2023, inventory levels dropped by 1.03 mnt or 7% y-o-y compared to 14.69 mnt.
Production volumes
The average daily crude steel output of CISA-affiliated mills stood at 2.096 mnt in early-November 2024 an increase of 0.1% compared with 2.093 mnt in late-October 2024. Moreover, output rose by 2.3% m-o-m from 2.049 mnt in early-October 2024.
The average daily finished steel output stood at 1.953 mnt, declined by 7.8% from 2.119 mnt in late-October 2024. On y-o-y basis the output remained unchanged.
Average pig iron output stood at 1.882 mnt in early-November 2024, a decrease of 0.1% m-o-m as compared to 1.885 mnt in late-October. However, on y-o-y basis output increased by 6.4%.
Outlook
The recent decline in inventory levels m-o-m indicates some recovery in demand but it remains uncertain whether this trend will continue. Factors like global economic conditions, domestic infrastructure projects, and real estate development will significantly influence future demand.