- Steel inventories rise by 5.9% y-o-y at key mills
- Production edges up slightly in mid-March
The China Iron and Steel Association (CISA) reported that total steel inventory at key China mills stood at 17.91 million tonnes (mnt) in mid-March 2026 (1-10 March), rising by 100,000 tonnes (t) or 0.6% compared with 17.81 mnt in early-March 2026.
Additionally, inventories decreased by 2.1 t or 1.2% m-o-m from 18.12 mnt in mid-February, while on a yearly basis, the same increased by 1 mnt or 5.9% compared with 16.91 mnt in mid-March 2025.
Production volume
The average daily crude steel production in CISA-affiliated mills stood at 2.02 mnt in mid-Marc, a marginal increase of 0.8% from 2.01 mnt in early-March. However, output decreased by 6.5% y-o-y from 2.17 mnt in mid-March 2025.
Average daily finished steel output stood at 1.984 mnt in mid-March, marking an increase of 7.5% from 1.845 mnt in early-March. Furthermore, this level dropped by 6.1% y-o-y.
Average daily pig iron output stood at 1.814 mnt in mid-March, marking a decrease of 0.4% from 1.821 mnt in early-March. Compared with the same period last year, output declined by 5.9% y-o-y.
Outlook
Inventories and production at CISA mills are likely to edge up slightly, as export disruptions amid ongoing geopolitical tensions divert supply to the domestic market, resulting in mild oversupply and exerting slight pressure on HRC prices.
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