China: CISA member mills reported lower steel inventories in late Jun’26

• CISA mills cut crude steel output amid weak seasonal demand.
• Pig iron production remained largely stable during late-June period.

The China Iron and Steel Association (CISA) reported that total steel inventories at key CISA-affiliated industries stood at around 16.28 million tonnes (mnt) during late-June (21-30 June 2026), marked a decrease of 1.62 mnt or 9.1% from 17.9 mnt in mid-June.

However, inventories inched up by 450,000 t or 2.8% m-o-m from 15.83 mnt in late-May.

Moreover, inventory levels rose by 830,000 tonnes (t) or 5.4% y-o-y from 15.45 mnt recorded in the same period last year.

The decline was primarily driven by steel mills scaling back production amid mounting inventory pressure, weak seasonal demand, and compressed margins. Persistently subdued construction activity due to the rainy season and high temperatures reduced steel demand and prompted mills to reduce output to prevent further inventory accumulation.

Production volumes

The average daily crude steel production of CISA-affiliated mills stood at around 2.02 mnt in late-June, down by 3.6% from 2.10 mnt recorded in mid-June. Furthermore, marked a drop of 4.9% y-o-y from 2.13 mnt in the same period last year.

Average daily finished steel output stood at around 2.21 mnt in late-June, up by 8.3% from 2.04 mnt in mid-June. However, on a yearly basis, finished steel output declined by 1.7% y-o-y from late-June 2025.

Average daily pig iron output stood at 1.900 mnt in late-June, inched down by 0.1% from 1.901 mnt in mid-June. Furthermore, pig iron production was down by 2.7% y-o-y.