China: Steel inventories at CISA mills continue to rise in mid-Jun’26

• Weak demand slows inventory clearance
• Crude steel production edges up 0.8% 

The China Iron and Steel Association (CISA) reported that total steel inventories at key CISA-affiliated industries stood at around 17.9 million tonnes (mnt) during mid-June (11-20 June 2026), marking an increase of 1.03 mnt or 6.1% from 16.87 mnt in early-June.

Furthermore, inventory levels rose by 1.69 mnt or 10.4% y-o-y from 16.21 mnt recorded in the same period last year.

However, inventories dropped by 0.87 mnt or 4.6% m-o-m from 18.77 mnt in mid-May.

Steel inventories increased as demand remained weak and end-user buying was insufficient to absorb available supply. This slowed the pace of inventory clearance, leading to higher stock levels.

Production volumes

The average daily crude steel production of CISA-affiliated mills stood at around 2.10 mnt in mid-June, marginally higher by 0.8% from 2.08 mnt in early-June.

Average daily finished steel output stood at around 2.04 mnt in mid-June, up by 5.6% m-o-m from 1.94 mnt in early June. However, on a yearly basis, finished steel output declined by 3.5% y-o-y from mid-June 2025.

Average daily pig iron output stood at 1.901 mnt in mid-June, up by 0.7% from 1.88 mnt in early-June. However, pig iron production was down by 2.4% y-o-y.