- Daily crude steel output up by 0.8%
- Daily finished steel output rises 4.2%
The China Iron and Steel Association (CISA) revealed that the total steel inventory at key Chinese enterprises stood at 16.73 million tonnes (mnt) in mid-February 2025. Inventory levels increased by 520,000 tonnes (t) or 3.2% from 16.21 mnt in early-February 2025. Moreover, the same surged by 3.8 mnt or 29.4% m-o-m against 12.93 mnt in mid-January 2025. However, steel inventories decreased by 2.25 mnt or 11.9% compared to 18.97 mnt in mid-February 2024.
Production volumes
The average daily crude steel output of CISA-affiliated mills touched 2.151 mnt in mid-February 2025, inching up by 0.8% from 2.133 mnt in early-February 2025.
The average daily finished steel output stood at 2.037 mnt in mid-February 2025, an increase of 4.2% from 1.954 mnt in early-February 2025. Moreover, on a y-o-y basis, output rose 2.6%.
Average pig iron output stood at 1.908 mnt in mid-February 2025, reflecting a decrease of 2.7% from 1.961 mnt in early-February 2025. In contrast, on a y-o-y basis, output increased by 2.4%.
Outlook
China’s steel inventory shows a complex trend, with monthly increases but yearly decreases, suggesting fluctuating demand. Increased production hints at potential oversupply. Coupled with Vietnam’s anti-dumping measures on Chinese steel, could lead to pricing pressures and export adjustments for Chinese steelmakers, impacting their future market share and profitability.
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