- Steel inventories decline 4.6% m-o-m
- Average daily crude steel output declines
The China Iron and Steel Association (CISA) has announced that the total steel inventory at key Chinese enterprises in early-July 2025 stood at 15.07 million tonnes (mnt), down by 380,000 tonnes (t) or 2.4% as compared to 15.45 mnt in late-June 2025.
Meanwhile, steel inventories declined by 720,000 t or 4.6% m-o-m from 15.79 mnt a month ago. Moreover, inventories fell by 330,000 t or 2.1% y-o-y from 15.40 mnt a year ago.
Production volumes
The average daily crude steel output of CISA-affiliated mills stood at 2.097 mnt in early-July, down by 1.5% from 2.13 mnt in late-June. Furthermore, on a y-o-y basis, output edged down by 2.6% as compared to 2.151 mnt a year ago.
The average daily finished steel output reached 1.988 mnt in early-July, representing a drop of 12% against 2.257 mnt in late-June. Moreover, on a y-o-y basis, the same was up slightly by 0.4% y-o-y.
Average pig iron output stood at 1.931 mnt in early-July, inched down by 1.1% from 1.953 mnt in late-July. Additionally, on a y-o-y basis, output marginally rose by 0.3%.
Outlook
China’s steel sector is expected to experience a slowdown in production growth, driven by efforts to manage inventory levels and adjust output to balance supply and demand. This strategic approach aims to stabilise the market, mitigate potential oversupply and support prices, leading to a more sustainable growth trajectory.
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