China: Steel inventories at CISA-affiliated mills increase in mid-Aug'24

The China Iron and Steel Association (CISA) has reported that total steel inventory at key enterprises reached 16.45 million tonnes (mnt) in mid-August 2024. This represented an increase of 553,400 tonnes (t) or 3.48% from 15.901 mnt in early August. Additionally, inventory levels edged up by 151,900 t or 0.93% m-o-m from 16.302 mnt in mid-July 2024. However, compared to mid-August 2023, inventory levels have decreased by 176,300 t or 1.06%, from 16.63 mnt.

Production volumes

The average daily crude steel output of CISA-affiliated mills stood at 1.993 mnt in mid-August 2024, a slight decrease of 0.5% against 2.003 mnt in early-August. Meanwhile, output declined by 7.2% m-o-m compared to 2.148 in mid-July 2024. Furthermore, output went down by 10.01% y-o-y against 2.215 mnt in mid-August 2023.

The average daily finished steel output stood at 1.879 mnt in mid-August, up by 2.16% from 1.839 mnt in early-August. However, the same went down by 12.82% y-o-y.

The average pig iron output stood at 1.823 mnt in mid-August, down by 1.02% against 1.841 mnt in early-August. In addition, output fell by 8.71% y-o-y.

Outlook

China's steel industry is navigating a challenging landscape. Steel production in China has decreased slightly, inventories are rising, and domestic steel prices along with export offers continue to decline. Additionally, the global market is facing extra pressure due to protectionist measures adopted by certain countries to combat steel dumping, further complicating the situation for Chinese steel manufacturers.