China: Steel inventories decline 15% in late-May’26 on steady consumption

• Downstream demand growth fastens inventory absorption
• Crude steel and pig iron output decline further

The China Iron and Steel Association (CISA) reported that the total steel inventories at key CISA mills stood at around 15.83 million tonnes (mnt) in late-May (21-31 May), marking a drop of 2.94 mnt or 15.7% compared with 18.77 mnt in mid-May.
Compared with the previous month, inventory level increased by 400000 tonnes (t) or 2.6% m-o-m from 15.43 mnt in late-April.

Furthermore, compared with the same period last year, inventories increased by 530,000 t or 3.5% y-o-y, from 15.30 mnt recorded in late-May 2025.

Steel inventory levels in China’s domestic market declined as demand from downstream sectors such as construction and manufacturing led to improved steel consumption. At the same time, steady production costs and stable market activity supported deliveries, allowing inventories to be gradually absorbed across the supply chain.

Production volumes

The average daily crude steel production of CISA-affiliated mills stood at around 2.006 mnt in late-May, marking a drop of 4.3% from 2.096 mnt in mid-May. Moreover, the same dropped by 4.1% y-o-y from 2.09 mnt in late-May 2025.

Average daily finished steel output stood at around 2.071 mnt in late-May, increasing by 3.2% from 2.007 mnt in mid-May. However, the same dropped by 4.8% y-o-y from the same period last year.

Average daily pig iron output stood at 1.819 mnt in late-May, down by 3.2% from 1.879 mnt in mid-May. Furthermore, on yearly basis, the output dropped by 4.9% y-o-y.