China: Steel inventories at CISA mills drop 11% m-o-m in early-Jan'25

• Steel stocks rise 1.8% from late-Dec'24
  
  
• Daily crude steel output up 2% m-o-m
  
  

The China Iron and Steel Association (CISA) reported that the total steel inventory at key Chinese enterprises touched 12.59 million tonnes (mnt) in early-January 2025. Inventory levels dropped by 1.59 mnt or 11.2% m-o-m against 14.18 mnt in early-December 2024. Moreover, compared to 14.39 mnt in early-January 2024, inventory levels declined by 12.5% y-o-y.

However, this volume represents a rise of 220,000 tonnes (t) or 1.8% from 12.37 mnt in late-December 2024.

Production volumes

The average daily crude steel output of CISA-affiliated mills stood at 2.065 mnt in early-January 2025, an increase of 10.3% compared with 1.872 mnt in late-December 2024. Moreover, output edged up by 2% m-o-m from 2.024 mnt in early-December 2024.

The average daily finished steel output stood at 1.899 mnt in early-January 2025, declining by 3.9% from 1.976 mnt in late-December 2024. However, on a y-o-y basis, the output remained range-bound.

Average pig iron output stood at 1.879 mnt in early-January 2025, an increase of 8.4% against 1.734 mnt in late-December 2024. Moreover, on a y-o-y basis, output rose by 2.3%.

Outlook

China's steel market is expected to experience a modest rebound in the near term, driven by improving demand and decreasing inventory levels. As steel inventories at CISA mills declined m-o-m in early-January 2025 and crude steel output increased from late-December 2024, market sentiment may shift towards optimism, supporting price stability and potential growth.