China: Steel inventories at CISA-affiliated mills increase by 5.6% in early-Sep’25

• Inventories climb up by 5% m-o-m, 6% y-o-y
• Daily crude steel output up 7% since late-Aug

The China Iron and Steel Association (CISA) has announced that the total steel inventory at key Chinese enterprises in early September 2025 stood at 15.82 million tonnes (mnt), increasing by 840,000 tonnes (t) or 5.6% as compared to 14.98 mnt in late-August 2025. Moreover, inventories increased by 750,000 t or 5.0% m-o-m from 15.07 mnt in the same period of the previous month. Compared to the same period last year, inventories were up by 850,000 t or 5.7% from 14.97 mnt.

Production volumes

The average daily crude steel output of CISA-affiliated mills stood at 2.087 mnt in early September, up by 7.2% from 1.95 mnt in late-August. Additionally, the same increased by 7.8% y-o-y.

The average daily finished steel output reached 1.956 mnt in early September, down by around 8.5% from 2.138 mnt in late-August. However, on a y-o-y basis, the same rose by 4.9%.

Average pig iron output stood at 1.896 mnt in early September, up by 3.8% against 1.827 mnt in late-August. Additionally, on a y-o-y basis, output increased by 6.3%.

Outlook

China’s near-term steel demand remains under pressure, as evidenced by rising inventories and a decrease in finished steel output. While crude steel production has increased, suggesting a supply-driven market, weaker performance in the construction sector and a shift in demand towards manufacturing and export-related sectors may contribute to a supply-demand imbalance.