- Daily crude steel output rises 2% from mid-Jan
- Steel inventory levels likely to drop post-LNY
The China Iron and Steel Association (CISA) reported that the total steel inventory at key Chinese enterprises stood at 15.35 million tonnes (mnt) in late-January 2025. Inventory levels increased by 2.42 mnt or 18.7% against 12.93 mnt in mid-January 2025. Moreover, the same rose by 2.98 mnt or 24.1% m-o-m from 12.37 mnt in late-December 2024. Furthermore, compared to 12.199 mnt in late-January 2024, inventory levels rose by 3.15 mnt or 25.8% y-o-y.
The spike in inventories can be attributed to the slowdown in trade activity amid the Chinese Lunar New Year holidays.
Production volumes
The average daily crude steel output of CISA-affiliated mills touched 2.109 mnt in late-January 2025, representing a rise of 1.8% from 2.072 mnt in mid-January 2025.
The average daily finished steel output stood at 2.023 mnt in late-January 2025, up by 2.6% from 1.972 mnt in mid-January. However, on a y-o-y basis, output fell by 6.5%.
Average pig iron output stood at 1.899 mnt in late-January 2025, an increase of 2.5% as compared to 1.853 mnt in mid-January. While, on a y-o-y basis, output fell by 4.9%.
Outlook
The post-Lunar New Year (LNY) period is expected to bring a gradual recovery in China’s steel market, driven by increasing demand. As construction and manufacturing activities resume, steel inventory levels are likely to decrease.
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