China: Steel inventories at CISA-affiliated mills rise in mid-Oct'24

The China Iron and Steel Association (CISA) reported that the total steel inventory at key enterprises reached 15.46 million tonnes (mnt) in mid-October 2024. This represents a rise of 5% or 730,000 tonnes (t) from 14.73 mnt in early-October 2024. However, inventory levels fell by 190,000 t or 1.2% m-o-m against 15.65 mnt in mid-September 2024. Moreover, compared to mid-October 2023, inventory levels decreased by 6.4% y-o-y or 1.05 mnt compared to 16.51 mnt.

Production volumes

The average daily crude steel output of CISA-affiliated mills stood at 2.072 mnt in mid-October 2024, an increase of 1.1% from 2.049 mnt in early-October 2024. Moreover, output rose by 4.2% m-o-m from 1.989 mnt in mid-September 2024. Furthermore, the same edged up by 1.6% y-o-y from 2.039 mnt in mid-October 2023.

The average daily finished steel output stood at 2.007 mnt, up by 3.8% from 1.933 mnt in early-October 2024. However, on y-o-y basis the same went slightly down by 0.8%.

The average pig iron output stood at 1.862 mnt in mid-October 2024, an increase of 0.4% as compared to 1.855 mnt in early-October 2024. However, on a y-o-y basis, the same decreased by 1.6%.

Outlook

The increase in steel inventories in China suggests slow demand in the region. Moreover, global economic slowdown, shifts in government policies, or a decline in domestic demand could create a more challenging environment for China's steel industry.