- Crude steel output up 5% in late February
- Declined inventory hints at demand recovery
The China Iron and Steel Association (CISA) revealed that the total steel inventory at key Chinese enterprises stood at 16.31 million tonnes (mnt) in late-February 2025. Inventory levels decreased by 420,000 tonnes (t ) or 2.5% against 16.73 mnt in mid-February 2025. However, the same surged by 960,000 t or 6.3% m-o-m from 15.35 mnt in late-January 2025. On y-o-y basis, steel inventories dropped by 1.71 mnt or 9.5% compared to 18.02 mnt in late-February 2024.
Production volumes
The average daily crude steel output of CISA-affiliated mills touched 2.259 mnt in late-February 2025, edging up by 5% as compared 2.151 mnt in mid-February 2025.
The average daily finished steel output stood at 2.301 mnt in late-February 2025, an increase of 13% against 2.037 mnt in mid-February 2025. Moreover, on a y-o-y basis, output rose by 23.8%.
Average pig iron output stood at 1.986 mnt in late-February 2025, reflecting an increase of 4.1% from 1.908 mnt in mid-February 2025. Furthermore, on a y-o-y basis, output increased by 17.5%.
Outlook
A decline in China’s steel inventories in late-February 2025, alongside rising production, indicates demand recovery. The “Two Sessions” meetings will provide insight into government policies on infrastructure spending, economic stimulus, and environmental regulations, influencing steel market trends and inventory levels in the near term.
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