The China Iron and Steel Association (CISA) reported total steel inventory of key enterprises in mid-July 2024 at 16.302 million tonnes (mnt), up by 899,600 tonnes (t) or 5.84% compared to 15.402 mnt in early-July. In addition, the same rose by 633,700 or 4.04% y-o-y compared with 15.668 mnt in mid-July 2023.
However, inventory levels edged down by 123,700 t or 0.75% m-o-m against 16.425 mnt in mid-June.
Production volumes
The average daily crude steel output of CISA-affiliated mills stood at 2.148 mnt in mid-July 2024, a decrease of 0.16% against 2.151 mnt in early-July. Moreover, output declined by 1.7% m-o-m compared to 2.185 mnt in mid-June. Furthermore, output moved down by 4.42% y-o-y against 2.247 mnt in mid-July 2023.
The average daily finished steel output stood at 2.037 mnt in mid-July, an increase of 2.9% from 1.979 mnt in early-July. However, production went down by 6.12% y-o-y.
The average daily pig iron output stood at 1.926 mnt in mid-July, edged up by 0.02% against 1.925 in early-July. However, production fell by 4.12% y-o-y.
Outlook
Although finished steel output has seen a slight increase, the broader trends in production and inventory levels indicate a slowdown in the Chinese steel market. Growing inventory levels hint at a looming oversupply issue that may impact the market’s supply-demand balance.
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