China: Steel inventories at CISA-affiliated mills up y-o-y, down m-o-m in early-Jun'24

The China Iron and Steel Association (CISA) reported total steel inventory of key enterprises in early-June 2024 at 16.086 million tonnes (mnt), up by 1.519 mnt or 10.43% compared to 14.566 mnt in late-May. However, inventory decreased by 193,200 tonnes (t) or 1.19% m-o-m compared with 16.279 mnt in early-May 2024. Moreover, the same rose by 281,900 t or 1.78% y-o-y compared to 15.804 mnt in early-June 2023.

Production volumes

The average daily crude steel output of CISA-affiliated mills stood at 2.248 mnt in early-June 2024, an increase of 3.31% against 2.176 mnt in late-May. Moreover, output increased by 2.6% m-o-m against 2.191 mnt in early-May. Furthermore, output inched up by 0.77% y-o-y against 2.231 mnt in early-June 2023.

The average daily finished steel output stood at 2.119 mnt in early-June, decreased by 5.26% from 2.237 mnt in late-May this year. However, production rose by 2.72% y-o-y.

The average daily pig iron output stood at 1.989 mnt in early-June, an increase of 3.03% against 1.930 mnt in late-May. However, production edged down by 0.71% y-o-y.

Outlook

China's steel industry is experiencing mixed signals. While crude steel production is increasing, there are signs of a potential slowdown in demand as indicated by rising inventories.