- Daily crude steel output increases by 3.4% from late-Mar
- Daily finished steel output drops 5.3% against late-Mar
The China Iron and Steel Association (CISA) revealed that the total steel inventory at key Chinese enterprises stood at 16.04 million tonnes (mnt) in early-April 2025. Inventory levels increased by 810,000 t or 5.3% from 15.23 mnt in late-March 2025.
However, stocks dropped by 200,000 t or 1.2% m-o-m from 16.24 mnt in early-March. On a y-o-y basis, steel inventories declined by 2.21 mnt or 12.1% compared to 18.25 mnt in early-April 2024.
Production volumes
The average daily crude steel output of CISA-affiliated mills touched 2.197 mnt in early-April 2025, an increase of 3.4% compared to 2.125 mnt in late-March 2025. Furthermore, the same rose 4% y-o-y from 2.11 mnt in early-April 2024.
The average daily finished steel output stood at 2.045 mnt in early-April 2025, a decrease of 5.3% against 2.16 mnt in late-March. Moreover, output climbed up by 3.5% y-o-y.
Average pig iron output stood at 1.95 mnt in early-April, reflecting an increase of 4% against 1.87 mnt in late-March. Furthermore, on a y-o-y basis, output increased by 2.4%.
Outlook
The short-term outlook for China’s steel market suggests continued elevated production, driven by seasonal construction demand and lower raw material costs. Increased output from mills in early-April is attributed to improved demand from the construction sector. However, the potential for oversupply remains a concern if domestic demand does not keep pace with the increased production, which could lead to cautious market sentiment.
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