- China crude steel output declines amid lower production
- Finished steel output rises despite weaker annual performance
The China Iron and Steel Association (CISA) reported that total steel inventories at key CISA-affiliated mills stood at around 18.33 million tonnes (mnt) during mid-August (11-20 August 2026), marking an increase of 1.15 mnt or 6.7% from 17.18 mnt in early-August.
Elevated inventories indicate that demand remains insufficient to absorb supply, with construction steel and HRC stocks continuing to build. Downstream activity may gradually improve with the start of the traditional peak season.
Moreover, inventory levels inched up by 200,000 tonnes (t) or 1.1% m-o-m from 18.13 mnt recorded in the same period last month.
Furthermore, on a yearly basis, inventories rose by 2.66 mnt or 17% y-o-y compared with 15.67 mnt recorded in mid-August 2025.
Production volumes
The average daily crude steel production of CISA-affiliated mills stood at around 1.965 mnt in mid-August, down 0.4% from 1.973 mnt recorded in early-August.
Chinese crude steel production declined marginally over the past 10 days, as steelmakers weighed mixed market conditions.
Furthermore, crude steel output decreased by 7.1% y-o-y from 2.12 mnt recorded in mid-August 2025.
Average daily finished steel output stood at around 1.915 mnt in mid-August, up by 5.3% from 1.819 mnt in early-August. However, finished steel output declined by 6.5% y-o-y from mid-August 2025.
Average daily pig iron output stood at 1.82 mnt in mid-August, down by 1.6% from 1.85 mnt in early-August. Furthermore, pig iron production was down by 5.4% y-o-y.
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