China: Steel inventories increase in mid-Jul’26 amid weak consumption

• Inventories rise despite slight drop in crude steel output
• Finished steel production rises 2.5% from early Jul’26

The China Iron and Steel Association (CISA) reported that total steel inventories at key CISA-affiliated industries stood at around 18.13 million tonnes (mnt) during mid-July (11-20 July 2026), marking an increase of 1.36 mnt or 8.1% from 16.77 mnt in early-July.

Moreover, inventory levels rose by 230,000 tonnes (t) or 1.3% m-o-m from 17.90 mnt recorded in the same period last month. Furthermore, inventories increased by 2.47 mnt or 15.8% y-o-y from 15.66 mnt recorded in mid-July 2025.

The rise in inventories was largely driven by weak downstream consumption. Heavy rainfall in southern China, high temperatures in the north and typhoon-related disruptions disrupted outdoor construction activity. At the same time, subdued real estate activity and delays in infrastructure project execution further slowed demand, particularly for construction steel.

Production volumes

The average daily crude steel production of CISA-affiliated mills stood at around 2.015 mnt in mid-July, down by 0.4% from 2.02 mnt recorded in early-July.

Average daily finished steel output stood at around 1.92 mnt in mid-July, up by 2.5% from 1.82 mnt in early-July. Furthermore, y-o-y, finished steel output declined by 7.3% y-o-y from mid-July 2025.

Average daily pig iron output stood at 1.841 mnt in mid-July, down by 1.3% from 1.865 mnt in early-July. Furthermore, pig iron production was down by 5.3% y-o-y.