China: Steel inventories at CISA-affiliated mills fall in late-Jul’26 amid lower production

• Steel inventories remain 10% higher y-o-y, stable m-o-m
• Crude steel, pig iron output falls by 5-8% from mid-Jul

The China Iron and Steel Association (CISA) reported that total steel inventories at key CISA-affiliated mills stood at around 16.28 million tonnes (mnt) during late-July (21-31 July 2026), marking a decrease of 1.85 mnt or 10.2% from 18.13 mnt in mid-July. Inventory levels declined despite need-based trade in the steel market, indicating that mills’ production cuts led to the drop in inventories.

However, inventory levels rose by 1.5 mnt or 10.1% y-o-y from 14.78 mnt recorded in the same period last year. Meanwhile, inventories remained nearly unchanged compared to the same period last month.

Production volumes

The average daily crude steel production of CISA-affiliated mills stood at around 1.864 mnt in late-July, down by 7.5% from 2.02 mnt recorded in mid-July. Furthermore, crude steel output decreased by 5.9% y-o-y.

Average daily finished steel output stood at around 1.982 mnt in late-July, up by 2.7% from 1.92 mnt in mid-July. Furthermore, finished steel output declined by 5.2% y-o-y from mid-July 2025.

Average daily pig iron output stood at 1.754 mnt in late-July, down by 4.7% from 1.841 mnt in mid-July. Furthermore, pig iron production was down by 5.5% y-o-y.