- Average daily crude steel production rises by 4% in early-May
- Improving demand may limit inventory growth in near term
The China Iron and Steel Association (CISA) reported that total steel inventories at key CISA industries stood at around 16.88 million tonnes (mnt) in early-May (1-10 May), an increase of 1.45 mnt or 9.4% compared to 15.43 mnt in late-April 2026.
On a m-o-m basis, inventories decreased by 630,000 tonnes (t) or 3.6% m-o-m from 17.51 mnt in early-April. However, inventories increased by 820,000 t or 5.1% from the same period last year.
China’s steel inventories increased as mills continued producing steel, while weaker demand from construction and manufacturing sectors slowed buying activity and led to higher stock levels.
Production volumes
The average daily crude steel production of CISA-affiliated industries stood at around 2.11 mnt in early-May 2026, an increase of or 3.6% from 2.03 mnt in late-April. Meanwhile, production dropped by 4.3% y-o-y from 2.21 mnt in early-May 2025.
Average daily finished steel output stood at 1.942 mnt in early-May 2026, dropping by 9.9% from 2.155 mnt in late-April. Moreover, the same dropped by 6.8% y-o-y from the same period last year.
Average daily pig iron output stood at around 1.89 mnt in early-May 2026, up by 2.45% from 1.85 mnt in late-April, whereas on yearly basis, the output dropped by 4.8% y-o-y.
Outlook
China’s domestic steel market in mid-May is expected to remain firm, supported by improving construction demand, favourable weather, and reduced long steel output due to maintenance shutdowns. Construction steel inventories are likely to decline further, although slower destocking in some flat steel products may keep overall market sentiment cautious.
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