China: Steel inventories at CISA mills rise in mid-Jul’25

• Steel inventories decline 3% m-o-m, 4% y-o-y
• Daily crude steel output up 2% since early-July

The China Iron and Steel Association (CISA) has announced that the total steel inventory at key Chinese enterprises in mid-July 2025 stood at 15.66 million tonnes (mnt), up by 580,000 tonnes (t) or 3.9% as compared to 15.07 mnt in early-July 2025.

Meanwhile, steel inventories declined by 550,000 t or 3.4% m-o-m from 16.21 mnt a month ago. Moreover, inventories fell by 640,000 t or 3.9% y-o-y from 16.30 mnt a year ago.

Production volumes

The average daily crude steel output of CISA-affiliated mills stood at 2.141 mnt in mid-July, up by 2.1% from 2.097 mnt in early-July. Furthermore, on a y-o-y basis, output edged down by 0.3% as compared to 2.148 mnt a year ago.

The average daily finished steel output reached 2.08 mnt in mid-July, increasing by around 4.6% against 1.988 mnt in early-July. Moreover, on a y-o-y basis, the same rose by 2.1% y-o-y.

Average pig iron output stood at 1.944 mnt in mid-July, up by 0.6% from 1.931 mnt in early-July. Additionally, on a y-o-y basis, output rose marginally by 0.9%.

Outlook

China’s steel sector is expected to witness a deceleration in production growth, primarily driven by initiatives to regulate inventory levels and align output with prevailing supply-demand dynamics. Although China’s steel inventory levels in mid-July have risen against early-July, stocks may decline, as buying improves. The slow demand scenario due to the hot-humid summer (June-August) in China might change with the shift to the autumn season (September-November).