China: Steel inventories at CISA mills rise in mid-Dec'24

The China Iron and Steel Association (CISA) has reported that total steel inventory at key enterprises reached 14.64 million tonnes (mnt) in mid-December 2024. This represents an increase of 460,000 tonnes (t) or 3.2% from 14.180 mnt in early-December 2024. However, inventory levels went down by 910,000 t or 5.9% m-o-m against 15.55 mnt in mid-November. In addition, compared to mid-December 2023, inventory levels fell by 380,000 t or 2.5% y-o-y compared to 15.017 mnt.

Production volumes

The average daily crude steel output of CISA-affiliated mills stood at 1.977 mnt in mid-December, a decrease of 2.3% compared with 2.024 mnt in early-December 2024. Moreover, output edged down by 5% m-o-m from 2.08 mnt in mid-November.

The average daily finished steel output stood at 1.968 mnt, up by 2.1% from 1.842 mnt in early-December 2024. Y-o-y, output edged up by 0.3%.

Average pig iron output stood at 1.813 mnt in mid-December, a decrease of 1.6% as compared to 1.842 mnt in early-December. However, on y-o-y basis output increased by 2.5%.

Outlook:

China's steel market is likely to face near-term headwinds, with rising inventories and declining crude steel output expected to persist amid traditional winter season slowdown in construction and industrial activities.