- Rising mill stocks signal persistent demand weakness
- Supply-side recovery increases pressure on inventories
According to the China Iron and Steel Association (CISA), total steel inventories at key CISA-affiliated mills stood at approximately 16.87 million tonnes (mnt) during 1–11 June 2026, increasing by 1.04 mnt or 6.6% from 15.83 mnt recorded in late-May. The increase in inventories coincided with a recovery in crude steel production during the period, while downstream demand remained relatively subdued, resulting in higher stock accumulation at mills. On a y-o-y basis as well, inventories were up by approximately 1.08 mnt or 6.8% compared with 15.79 mnt the same period last year.
Compared with early-May, however, inventory levels were broadly stable, edging down by 10,000 t or 0.1% from 16.88 mnt. The marginal decline indicates that lower steel production during May helped prevent a significant build-up in inventories despite weak market demand.
Production volumes
The average daily crude steel production of CISA-affiliated mills stood at around 2.083 mnt in early-June, up by 3.8% from 2.006 mnt in late-May. However, output was 3.5% lower y-o-y compared with approximately 2.159 mnt in early-June 2025.
Average daily finished steel output stood at around 1.940 mnt in early-June, down by 6.4% from 2.071 mnt in late-May. Similarly, on a y-o-y basis, finished steel output declined by 4.8% from 2.037 mnt in early-June 2025.
Average daily pig iron output stood at 1.888 mnt in early-June, up by 3.8% from 1.819 mnt in late-May. However, pig iron production was 3.8% lower y-o-y compared with 1.963 mnt in the same period last year.
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