China: Steel inventories at CISA mills decrease in late-Dec'23

The China Iron and Steel Industry Association reported steel inventory of key steel enterprises in late-December 2023 at 12.360 million tonnes (mnt), decrease by 2.657 mnt or 17.69% against 15.017 mnt in mid-December 2023. However, inventories declined by 603,600 tonnes (t) or 4.66% m-o-m compared with 12.963 mnt in late-November 2023. In addition, the same fell by 5.34% y-o-y or 697,100 t compared to 13.057 mnt in late-December 2022.

Production volumes

The average daily crude steel output of CISA-affiliated mills stood at 1.666 mnt in late-December 2023, down by 13.63% from 1.932 mnt in mid-December 2023. Also, output went down by 17.4% m-o-m against 2.016 mnt in late-November 2023. In addition, output fell by 13.04% y-o-y against 1.910 mnt in mid-December 2022.

The average daily finished steel output stood at 1.922 mnt in late-December 2023, edged down by 1.98% from 1.929 mnt in mid-December 2023. Moreover, production declined by 2.83% y-o-y.

The average daily pig iron output stood at 1.594 mnt in late-December 2023, fell by 12.13% from 1.815 mnt in mid-December 2023. In addition, it went down by 9.77% y-o-y.

Steel inventories and crude steel production is declined amid Christmas and New Year holidays, also, the overall demand is showing downward trend. As a result, buyers have been taking a wait-and-see approach, leading to moderate purchase activity.