The China Iron and Steel Association (CISA) reported that the total steel inventory at key enterprises reached 14.541 million tonnes (mnt) in late August 2024. This represents a decline of 1.912 mnt or 11.62% from 16.45 mnt in mid-August. Additionally, inventory levels fell by 1.508 mnt or 9.4% m-o-m from 16.050 mnt in late July 2024. Moreover, compared to late August 2023, inventory levels fell by 182,600 tonnes (t) or 1.24% y-o-y from 14.725 mnt.
Production volumes
The average daily crude steel output of CISA-affiliated mills stood at 1.885 mnt in late August 2024, a decrease of 5.42% against 1.993 mnt in mid-August. Moreover, output declined by 4.5% m-o-m, compared to 1.973 mnt in late July 2024, and 7.83% y-o-y, as against 2.046 mnt in late August 2023.
The average daily finished steel output stood at 1.955 mnt, up by 4.07% from 1.879 mnt in mid-August. However, the same went down by 10.82% y-o-y.
The average pig iron output stood at 1.755 mnt in late August, down by 3.68% against 1.823 mnt in mid-August. On a y-o-y basis, output fell by 6.41%.
Outlook
Declining inventory levels and production volumes of steel in China indicate a potential downturn in the market. This is likely due to reduced demand from construction and manufacturing sectors. The future outlook will depend on factors such as global economics, government policies, and competition. If demand remains low or production constraints continue, the market may experience more volatility and price fluctuations.
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