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

The China Iron and Steel Association (CISA) has reported that total steel inventory at key enterprises reached 15.55 million tonnes (mnt) in mid-November 2024. This represents an increase of 1.89 million tonnes (mnt) or 13.8% from 13.66 mnt in early-November 2024. Moreover, inventory levels went up by 9,000 tonnes(t) or 0.6% m-o-m against 15.46 mnt in mid-October 2024. Furthermore, compared to early-November 2023, inventory levels rose by 220,000 t or 1.4% y-o-y compared to 15.33 mnt.

Production volumes

The average daily crude steel output of CISA-affiliated mills stood at 2.08 mnt in mid-November 2024 a decrease of 0.8% compared with 2.096 mnt in early-November 2024. However, output edged up by 0.4% m-o-m from 2.072 mnt in mid-October 2024.

The average daily finished steel output stood at 2.023 mnt, up by 3.6% from 1.953 mnt in early-November 2024. On y-o-y basis the output saw an increase of 1.7%..

Average pig iron output stood at 1.876 mnt in mid-November 2024, a decrease of 0.3% as compared to 1.882 mnt in early-November. However, on y-o-y basis output increased by 5.6%.

Outlook

The short-term outlook suggests potential pressure on steel prices due to rising inventory levels, though increased demand for finished steel products could offset this to some extent. The overall trend indicates a cautious approach, with the industry closely monitoring market dynamics and adjusting production accordingly.