The China Iron and Steel Association (CISA) reported total steel inventory of key enterprises in mid-May 2024 stood at 16.826 million tonnes (mnt), up by 547,000 tonnes (t) or 3.36% compared to 16.279 mnt in early-May. However, inventory decreased by 1.289 mnt or 7.12% m-o-m compared with 18.116 mnt in mid-April, while, the same rose by 561,800 t or 3.45% y-o-y compared to 16.26 mnt in mid-May 2023.
Production volumes
The average daily crude steel output of CISA-affiliated mills stood at 2.209 mnt in mid-May 2024, inched up by 0.81% against 2.191 mnt in early-May. Moreover, output increased by 4.3% m-o-m against 2.119 mnt in mid-April. However, output decreased by 1.61% y-o-y against 2.245 mnt in mid-May 2023.
The average daily finished steel output stood at 2.12 mnt in mid-May, increasing by 4.75% from 2.023 mnt in early-May this year. However, production edged down by 0.92% y-o-y.
The average daily pig iron output stood at 1.978 mnt in mid-May, up by 2.18% against 1.936 mnt in early-May. However, production slightly went down by 0.83% y-o-y.
Outlook: The data suggests mixed sentiments for the Chinese steel industry. While production is picking up in the short term, there might be a slowdown in demand growth compared to last year. Inventory levels are decreasing m-o-m , but remain slightly higher year-over-year.