China: Steel inventories at CISA mills decline by 5.9% m-o-m in late-Dec'24

• Steel inventories remain range-bound y-o-y
  
  
• Daily crude steel output falls 10.5% m-o-m
  
  

The China Iron and Steel Association (CISA) reported that the total steel inventory at key enterprises reached 12.37 million tonnes (mnt) in late-December 2024. This represents a decline of 780,000 t or 5.9% m-o-m compared to 13.15 mnt in late-November 2024. Moreover, inventory levels went down by 2.27 mnt or 15.5% from 14.64 mnt in mid-December 2024. However, compared to late-December 2023, inventory levels remained range-bound.

Production volumes

The average daily crude steel output of CISA-affiliated mills stood at 1.872 mnt in late-December 2024, a decrease of 5.3% compared with 1.977 mnt in mid-December 2024. Moreover, output fell by 10.5% m-o-m from 2.091 mnt in late-November 2024.

The average daily finished steel output stood at 1.976 mnt in late-December 2024, edging up by 0.4% from 1.968 mnt in mid-December 2024. Y-o-y, output increased by 2.8%.

Average pig iron output stood at 1.734 mnt in late-December 2024, a decrease of 4.4% from 1.813 mnt in mid-December. However, on a y-o-y basis, output increased by 12.4%.

Outlook

China's steel industry is expected to improve, driven by government projects and a potential recovery in construction. As inventory levels drop, prices may stabilise, helping steel producers. However, global economic uncertainty and trade tensions remain concerns.