China: Steel inventories at key CISA mills rise 6% in early Jan’26

• Inventories increase by 2% m-o-m, 19.5% y-o-y
• Weak domestic demand drives inventory build-up

The China Iron and Steel Association (CISA) reported that total steel inventory at key Chinese enterprises reached 15.04 million tonnes (mnt) in early-January 2026 (1-10 January), an increase of 900,000 tonnes (t) or 6.4% against 14.14 mnt in late-December 2025.

Moreover, inventories rose by 290,000 t or 2% m-o-m from 14.75 mnt in early-December 2025. On a y-o-y basis, inventories rose by 2.45 mnt or 19.5% compared with 12.59 mnt in early-January 2025.

Production volume

The average daily crude steel output of CISA-affiliated enterprises stood at 1.99 mnt in early January, up by 21.6% from 1.64 mnt in late-December 2025. However, output declined by 3.3% y-o-y from 2.07 mnt in early-January 2025.

Average daily finished steel output stood at 1.82 mnt in early-January 2026, down by 3.7% from 1.89 mnt in late-December 2025. Moreover, this level was 4% lower on a y-o-y basis.

Average daily pig iron output stood at 1.76 mnt in early-January 2026, up by 5.5% from 1.71 mnt in late-December 2025. However, the output was 6.2% lower y-o-y.

Outlook

The rise in steel inventories in early January 2026 highlights continued weakness in domestic demand. In this context, y-o-y declines in crude steel, finished steel, and pig iron output point to mills likely engaging in production control to limit the inventory rise. Considering the current scenario, mills are likely to keep output in check until clearer signs of demand recovery emerge.