China: Steel inventories at key CISA-affiliated mills decrease by 11% in late-Aug’26

• Domestic demand slow as inventories remain higher y-o-y
• Crude steel output falls due to continued losses at mills 

The China Iron and Steel Association (CISA) reported that total steel inventories at key CISA-affiliated mills stood at around 16.25 million tonnes (mnt) during late August (21-31 August 2026), marking a decrease of 2.08 mnt or 11.4% from 18.33 mnt in mid-August. Moreover, inventory levels marginally dropped by 30,000 tonnes (t) or 0.2% m-o-m from 16.28 mnt recorded in the same period last month.

However, despite the inventory reduction, operating pressure on CISA-affiliated mills remained high, as the slow recovery in domestic demand continued to restrict market activity. Y-o-y, inventories remained higher by 1.27 mnt or 8.5% y-o-y compared with 14.98 mnt recorded in late August 2025.

Production volumes

The average daily crude steel production of CISA-affiliated mills stood at around 1.885 mnt in late August, down 4.0% from 1.97 mnt recorded in mid-August. Furthermore, crude steel output decreased by 3.1% y-o-y from 1.95 mnt recorded in late August 2025. Continued losses prompted maintenance at several blast furnaces and EAFs, temporarily reducing crude steel and pig iron output. Meanwhile, weak downstream demand remained insufficient to support higher production.

Average daily finished steel output stood at around 2.008 mnt in late August, up by 4.8% from 1.915 mnt in mid-August. However, finished steel output declined by 6.1% y-o-y from late-August 2025.

Average daily pig iron output stood at 1.765 mnt in late August, down by 3.0% from 1.82 mnt in mid-August. Furthermore, pig iron production was down by 3.4% y-o-y.