China: Steel inventories at CISA-affiliated mills drop 4% in end-Aug’25

• Inventories drop by 4.4% against mid-Aug, rise 1.4% m-o-m
• Daily crude steel output drops 7.9% since mid-Aug

The China Iron and Steel Association (CISA) has announced that the total steel inventory at key Chinese enterprises in late-August 2025 stood at 14.98 million tonnes (mnt), declining by 690,000 tonnes (t) or 4.4% as compared to 15.07 mnt in mid-August 2025.

Moreover, inventories increased by a minor 200,000 t or 1.4% m-o-m from 14.78 mnt in the same period previous month.

Compared to the same period last year, inventories were up by 440,000 t or 3% from 14.54 mnt.

Production volumes

The average daily crude steel output of CISA-affiliated mills stood at 1.947 mnt in late-August, down by 7.9% from 2.115 t in mid-August. Additionally, the same has dropped by 1.8% from 1.982 mnt in mid-August 2024.

The average daily finished steel output reached 2.138 mnt in late-August, up by around 4.3% from 2.049 mnt in mid-August. However, on a y-o-y basis, the same nudged down by 0.6%.

Average pig iron output stood at 1.827 mnt in late-August, down by 5% against 1.924 mnt in mid-August. Additionally, on a y-o-y basis, output declined by 5.4, and on a monthly comparison, it dropped by around 5.1%.

Outlook

China’s steel market is likely to stay volatile amid the demand-supply mismatch in the near term. Although some sectors are performing better and opening avenues for demand, but would lag in compensating for the demand generated by construction businesses, which are currently showing a weaker performance. Meanwhile, despite the government’s efforts to expunge excess or outdated capacities by way of production curtailment and carbon emission goals, production has shown only a negligible drop.