China: Steel inventories at CISA-affiliated mills rise y-o-y, decline m-o-m in mid-Jun'24

The China Iron and Steel Association (CISA) reported total steel inventory of key enterprises in mid-June 2024 at 16.425 million tonnes (mnt), up by 339,500 tonnes (t) or 2.11% compared to 16.086 mnt in early-June. However, inventory decreased by 400,600 t or 2.38% m-o-m compared with 16.826 mnt in mid-May 2024. Moreover, the same rose by 203,800 t or 1.26% y-o-y compared to 16.222 mnt in mid-June 2023.

Production volumes

The average daily crude steel output of CISA-affiliated mills stood at 2.185 mnt in mid-June 2024, a decrease of 2.81% against 2.248 mnt in early-June. Moreover, output edged down by 1.1% m-o-m against 2.209 mnt in mid-May. Furthermore, output edged down by 3.43% y-o-y against 2.262 mnt in mid-June 2023.

The average daily finished steel output stood at 2.098 mnt in mid-June, inched down by 1.02% from 2.119 mnt in early-June this year. However, production rose by 3.21% y-o-y.

The average daily pig iron output stood at 1.961 mnt in mid-June, edged down by 1.46% against 1.989 mnt in early-June. However, production went down by 2.87% y-o-y.

Outlook

China's steel industry appears to be facing mixed signals. While rising inventories and falling crude steel production suggest a slowdown, the continued rise in finished steel output points to some ongoing demand. The industry's short-term outlook depends on several uncertainties, including government decisions on infrastructure projects and construction, as well as global steel market trends.