China: Steel inventories at key CISA-mills increase by 1.7% in early-Sep’26

• Mill inventories rise as demand recovery slows
• Finished steel output falls 10.7% in early-Sep

The China Iron and Steel Association (CISA) reported that total steel inventories at key CISA-affiliated mills stood at around 16.52 million tonnes (mnt) during early September (1-10 September 2026), marking an increase of 0.27 mnt or 1.7% from 16.25 mnt in late-August. Moreover, on a yearly basis inventories increased by 0.70 mnt or 4.4% compared with 15.82 mnt recorded in early September 2025.

Despite lower crude steel production, CISA mill inventories rose in early September as the recovery in actual steel demand remained slower than expected. Repeated coke and coal price hikes supported speculative buying, but weak end-user demand limited restocking, leading to inventory accumulation at mills.

However, inventory levels decreased by 0.66 mnt or 3.8% m-o-m from 17.18 mnt recorded in the same period last month.

Production volumes

The average daily crude steel production of CISA-affiliated mills stood at around 1.924 mnt in early-September, up by 2.0% from 1.885 mnt recorded in late-August.

Average daily finished steel output stood at around 1.794 mnt in early September, down by 10.7% from 2.008 mnt in late-August.

Average daily pig iron output stood at 1.795 mnt in early September, up by 1.7% from 1.765 mnt in late-August. Moreover, pig iron production remained below the corresponding year-ago level.