China: Steel inventories at key CISA mills rise by around 7% in mid-Jan’26

• Inventories surge 24.7% y-o-y despite falling production
• Daily crude steel output drops, industrial demand cools down 

The China Iron and Steel Association (CISA) has reported that total steel inventory at key Chinese enterprises stood at 16.13 million tonnes (mnt) in mid-January 2026 (11-20 January), up by 1.09 mnt or 7.3% compared to 15.04 mnt in early-January. Moreover, on m-o-m basis, inventory levels increased by 120,000 tonnes (t) or 0.8% m-o-m from 16.01 mnt in mid-December 2025. Furthermore, inventories rose by 3.2 mnt or 24.7% y-o-y against 12.93 mnt a year ago.

Production volume

The average daily crude steel output of CISA-affiliated enterprises reached 1.97 mnt in mid January, inched down by 0.9% from 1.99 mnt in early January 2026. Additionally, crude steel output declined by 4.5% y-o-y.

The average daily finished steel output is approximately 1.87 mnt in mid-January 2026, edged up by 3% from 1.82 mnt in early January 2026. Moreover, the production declined by 4% on a y-o-y basis.

The average daily pig iron output is around 1.79 mnt in mid January 2026, up by 1.8% from 1.76 mnt in early January 2026. While, on a y-o-y basis, pig iron production dropped by 4.5% y-o-y.

Outlook

The subtle rise in inventories in mid-January shows lower demand in China’s domestic market. Continuous decrease in output of crude steel, finished steel and pig iron indicates that production is likely to put a limit on inventory rise.