China: Steel inventories at CISA mills increase 8% in early-Oct’26

• Weak post-holiday demand slows down stock clearance
• Pig iron production records modest growth in early Oct

The China Iron and Steel Association (CISA) reported that total steel inventories at key CISA-affiliated mills stood at around 16.97 million tonnes (mnt) during early October (01-10 October 2026), increasing by 1.32 mnt or 8.4% from 15.65 mnt in late September.

Moreover, m-o-m, inventories increased by 4,50,000 tonnes (t) or 2.7% compared with 16.52 mnt recorded in early September 2026.

China’s steel inventories increased after the National Day holiday as weak downstream demand and cautious buying slowed stock clearance. Although major mills reduced production in early October, weak demand continued to limit inventory drawdowns, keeping stock levels elevated and steel prices under pressure.

Furthermore, on a y-o-y basis, inventories rose by 1.09 mnt, or 6.9%, from 15.88 mnt recorded during the corresponding period last year.

Production volumes

The average daily crude steel production of CISA-affiliated mills stood at around 1.939 mnt in early October, up by 3.1% from 1.88 mnt recorded in late September 2026.

Meanwhile, average daily pig iron output stood at 1.778 mnt in early October, making an increase of 1.4% from 1.753 mnt in late September.

However, average daily finished steel output stood at around 1.82 mnt in early October, down by 11.5% from 2.09 mnt in late September.