The China Iron and Steel Association (CISA) has reported that total steel inventory of key enterprises in early-August 2024 at 15.9 million tonnes (mnt), down by 149,900 tonnes (t) or 0.93% compared to 16.050 mnt in late-July.
However, the same rose by 498,000 t or 3.23% m-o-m against 15.402 mnt in early-July 2024. While inventory levels fell by 151,200 t or 0.94% y-o-y compared with 16.051 mnt in early-August 2023.
Production volumes
The average daily crude steel output of CISA-affiliated mills stood at 2 mnt in early-August 2024, an increase of 1.52% against 1.973 mnt in late-July. Whereas, output declined by 6.9% m-o-m compared with 2.151 in early-July 2024. Furthermore, output went down by 6.94% y-o-y against 2.152 mnt in early-August 2023.
The average daily finished steel output stood at 1.839 mnt in early-August, a decrease of 7.07% from 1.978 mnt in late-July. Moreover, production went down by 10.02% y-o-y.
The average pig iron output stood at 1.841 mnt in early-August, increase by 2.92% against 1.789 mnt in late-July. Furthermore, output fell by 6.81% y-o-y.
Outlook
The Chinese steel industry is facing a complex situation. While inventory levels have declined and crude steel production has increased, Chinese prices are still trending down. Moreover, the situation in the global market has been further compounded by protective measures implemented by some countries to counter steel dumping.
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