China: Steel inventories at key CISA-mills increase by 3% in mid-Sep’26

• Inventories increase as supply-demand imbalance continues
• Crude steel output remains stable but finished steel production rises

The China Iron and Steel Association (CISA) reported that total steel inventories at key CISA-affiliated mills stood at around 17.08 million tonnes (mnt) during mid-September (11-20 September 2026), marking an increase of 0.56 mnt or 3.4% from 16.52 mnt in early September. Moreover, y-o-y, inventories increased by 1.79 mnt or 11.7% compared with 15.29 mnt recorded in mid-September 2025.

The higher inventories at CISA-affiliated mills in mid-September reflected a slower-than-expected recovery in steel demand. Mills increased rolling and finished steel production, resulting in higher finished steel supply, while end-user demand was insufficient to absorb the additional volumes. As a result, the supply-demand gap led to inventory accumulation at mills, keeping stock levels elevated.

On a m-o-m basis, however, inventories declined by 1.25 mnt, or 6.8%, from 18.33 mnt recorded during the corresponding period in August.

Production volumes

The average daily crude steel production of CISA-affiliated mills stood at around 1.922 mnt in mid-September, down by 0.1% from 1.924 mnt recorded in early-September. Meanwhile, Average daily pig iron output stood at 1.770 mnt in mid-September, slightly down by 1.4% from 1.795 mnt in early-September. Conversely, average daily finished steel output stood at around 1.855 mnt in mid-September, up by 3.4% from 1.794 mnt in early-September.