The China Iron and Steel Association (CISA) reported total steel inventory of key enterprises in early-May 2024 stood at 16.279 million tonnes (mnt), up by 398,400 tonnes (t) or 2.51%compared to 15.881 mnt in late-April. However, inventory decreased by 1.974 mnt or 10.82% m-o-m compared with 18.253 mnt in early-April and was also down by 1.331 mnt or 7.56% y-o-y compared to 17.610 mnt in early-May 2023.
Production volumes
The average daily crude steel output of CISA-affiliated mills stood at 2.191 mnt in early-May 2024, went slightly down against 2.199 mnt in late-April. Whereas, output increased by 3.8% m-o-m against 2.111 mnt in early-April. However, output fell by 2.63% y-o-y against 2.250 mnt in early-May 2023.
The average daily finished steel output stood at 2.023 mnt in early-May, falling by 5.87% from 2.150 mnt in late-April this year. Moreover, production decreased by 3.02% y-o-y.
The average daily pig iron output stood at 1.936 mnt in early-May, inching up by 0.64% against 1.924 mnt in late-April. However, production decreased by 3.45% y-o-y.
Outlook:
China’s steel industry faces a cautious short-term outlook. Though inventories remain low compared to last year, rising stockpiles and dipping production suggest softening demand.