The China Iron and Steel Association (CISA) reported that the total steel inventory at key affiliated enterprises touched 14.97 million tonnes (mnt) in early September 2024. The inventory levels fell by 930,000 t or 5.8% m-o-m from 15.90 mnt in early August 2024 and by 830,000 t or 5.3% y-o-y compared to early September 2023, which saw 15.803 mnt in total inventory.
However, inventory levels increased by 2.9% or 430,000 tonnes (t) from 14.541 mnt in late August 2024
Production volumes
The average daily crude steel output of CISA-affiliated mills stood at 1.936 mnt in early September 2024, an increase of 2.7% against 1.885 mnt in late August 2024. However, output dropped by 3.4% m-o-m, compared to 2.003 mnt in early August 2024, and by 10.3% y-o-y from 2.159 mnt in early September 2023.
The average daily finished steel output stood at 1.865 mnt, down by 4.6% from 1.955 mnt in late August 2024. Moreover, the same went down by 8.8% y-o-y.
The average pig iron output stood at 1.783 mnt in early September, up by 1.6% against 1.755 mnt in late August. On a y-o-y basis, output fell by 10.1%.
Outlook
The Chinese steel industry is experiencing a period of volatility, driven by fluctuating production levels and declining inventory. The reduction in steel inventories comes in the wake of weakening demand, which has led to an imbalance between supply and demand. However, the simultaneous increase in crude steel production while finished steel output declines could indicate a build-up of inventory. These trends highlight challenges stemming from market fluctuations, economic conditions, and policy adjustments.
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