China: Steel inventories at CISA-affiliated mills drop in late-Jul’25

• Steel inventories decline by 4.3% m-o-m, 7.9% y-o-y
• Daily crude steel output drops 7.4% since mid-July

The China Iron and Steel Association (CISA) has announced that the total steel inventory at key Chinese enterprises in late-July 2025 stood at 14.78 million tonnes (mnt), lower by 880,000 tonnes (t) or 5.6% as compared to 15.66 mnt in mid-July 2025.

Meanwhile, steel inventories declined by 670,000 t or 4.3% m-o-m from 15.45 mnt a month ago. Moreover, inventories fell by 1.27 mnt or 7.9% y-o-y from 16.05 mnt a year ago.

Production volumes

The average daily crude steel output of CISA-affiliated mills stood at 1.980 mnt in late-July, down by 7.4% from 2.141 mnt in mid-July.

The average daily finished steel output reached 2.091 mnt in late-July, increasing by around 0.5% against 2.08 mnt in mid-July. However, on a y-o-y basis, the same dropped by 4%.

Average pig iron output stood at 1.856 mnt in late-July, down by 4.5% from 1.944 mnt in mid-July. Additionally, on a y-o-y basis, output fell by 5.8%.

Outlook

China’s steel industry is expected to experience a slowdown in production growth, largely attributable to measures aimed at managing inventory volumes and harmonising output with current supply and demand conditions. Despite an increase in steel inventories in mid-July compared to early-July, stock levels are likely to decrease as purchasing activity strengthens. Subdued demand observed during the hot and humid summer months (June to August) in China may improve with the transition to the autumn season (September to November).