China: Steel inventories at key CISA mills increase by around 20% in mid-Feb’26

• Crude steel production declines 5.7% y-o-y in mid-Feb
• Daily finished steel output rises 8.6% from early-Feb’26 levels

The China Iron and Steel Association (CISA) announced that total steel inventory at key Chinese industries stood at 18.12 million tonnes (mnt) in mid-February 2026 (11-20 Februay), showing up by 3.01 mnt or 19.9% compared to 15.11 mnt in early-February 2026 (1-10 February). Moreover, inventory levels increased by 1.99 mnt or 12.3% m-o-m from 16.13 mnt in mid-January 2026. Furthermore, inventory level rose by 1.39 mnt or 8.3% y-o-y against 16.73 mnt an year ago.

Production volume

The average daily crude steel output of CISA-affiliated industries reached 2.029 mnt in mid-February, increased by 4.3% from 1.95 mnt in early-February 2026. However, crude steel output fell by 5.7% y-o-y.

The average daily finished steel output stood at 1.901 mnt in mid-February 2026, emerging by 8.6% from 1.75 mnt in early-February 2026. Moreover, the output declined by 6.7% y-o-y basis.

The average daily pig iron output marked at 1.844 mnt in mid-February increasing by 4.1% from 1.772 mnt in early-February 2026. However, on a y-o-y basis, production dropped by 3.4%.

Outlook

Inventories increased amid weak demand and muted trading activity, particularly during the Lunar New Year holidays. Although demand is expected to recover gradually as market participants return, mills are likely to keep their production levels in line with the pace and sustainability of the demand rebound as post-holiday activity gains momentum.