China: Steel inventories at key CISA mills increase by around 2% in early-Feb’26

• Crude steel production declines 9% y-o-y in early-Feb
• Daily finished steel output falls 10% since late-Jan’26

The China Iron and Steel Association (CISA) reported that total steel inventory at key Chinese enterprises stood at 15.11 million tonnes (mnt) in early-February 2026 (1-10 February), increasing by 400,000 tonnes (t) or 2.7% compared to 14.71 mnt in late-January 2026 (21-31 January). Furthermore, on a m-o-m basis, inventory levels edged up by 70,000 t or 0.5% m-o-m from 15.04 mnt in early-January 2026. However, inventories decreased by 1.1 mnt or 6.8% y-o-y against 16.21 mnt a year ago.

Demand remains slow ahead of the Lunar New Year holidays in the country. The market is expected to remain cautious until the end-user consumption improves.

Production volume

The average daily crude steel output of CISA-associated mills reached 1.946 mnt in early-February, marginally up by 0.6% from 1.94 mnt in late-January 2026. Furthermore, crude steel output fell by 8.8% y-o-y.

The average daily finished steel output stood at 1.75 mnt in early-February 2026, dropping by 9.6% from 1.94 mnt in late-January 2026. Moreover, the output declined by 10.4% on a y-o-y basis.

The average daily pig iron output was at 1.772 mnt in early-February, marginally down by 1.8% from 1.74 mnt in late-January 2026. Moreover, on y-o-y basis, production dropped by 9.7%.