- Crude steel output dips 13% y-o-y in late-May
- Finished steel production drops m-o-m
The China Iron and Steel Association (CISA) has announced that the total steel inventory at key Chinese enterprises was at around 15.3 million tonnes (mnt) in late-May 2025. Inventory levels dropped by 1.05 mnt or 6.4% from 16.35 mnt in mid-May. However, the inventory levels increased by 10,000 t or 0.1% m-o-m against 15.29 mnt in late-April. Moreover, y-o-y, steel inventories rose by 730,000 t or 5% y-o-y as compared to 14.56 mnt in late-May 2024.
Production volumes
The average daily crude steel output of CISA-affiliated mills stood at 2.09 mnt in late-May, inching down 4.9% against 2.19 mnt in mid-May. Moreover, the same edged down by 5 % m-o-m against 2.20 mnt in late-April.
The average daily finished steel output reached 2.17 mnt in late-May, up by 2.5% as of 2.21 mnt in mid-May. Furthermore, on y-o-y basis, the same dropped up by 11.6 % y-o-y.
Average pig iron output stood at 1.91 mnt in late-May, reflecting a drop of 3.5% from 1.98 mnt in mid-May. Moreover, output declined by 9.9 % y-o-y.
Outlook
China’s domestic market sentiment remains subdued, with production declines and inventory fluctuations reflecting ongoing challenges in the Chinese steel sector. Moreover, increase in inventory levels on a m-o-m basis, suggests the industry is struggling with weak demand and/or oversupply.
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