China: Steel inventories at CISA mills increase in early-Feb'25

• Crude steel production rises 1% from late-Jan
  
  
• Finished steel output drops 3.4% from late-Jan
  
  

The China Iron and Steel Association (CISA) reported that the total steel inventory at key Chinese enterprises stood at 16.21 million tonnes (mnt) in early-February 2025. Inventory levels increased by 860,000 tonnes (t) or 5.6% from 15.35 mnt in late-January 2025. Moreover, the same surged by 3.62 mnt or 28.8% m-o-m from 12.59 mnt in early-January 2025.

Production volumes

The average daily crude steel output of CISA-affiliated mills touched 2.133 mnt in early-February 2025, representing a rise of 1.1% from 2.109 mnt in late-January 2025.

The average daily finished steel output stood at 1.954 mnt in early-February 2025, declining by 3.4% from 2.023 mnt in late-January. However, on a y-o-y basis, output rose by 2.2%.

Average pig iron output stood at 1.961 mnt in early-February 2025, an increase of 3.3% from 1.899 mnt in late-January. Moreover, on a y-o-y basis, output was up by 3%.

Outlook

The Chinese steel market appears to be experiencing a period of inventory build-up amid increased crude steel and pig iron production. Finished steel output decreased slightly, which could contribute to the rising inventories. This suggests potential softening demand, which could put downward pressure on steel prices in the near term.