China: Steel inventories, production drop in late-Mar’26

• Restocking activity slows ahead of Qingming holiday
• Inventories fall 5% m-o-m but remain 9% higher y-o-y

Steel inventories at key mills tracked by the China Iron and Steel Association (CISA) totalled around 16.55 million tonnes (mnt) in late-March 2026 (21-31 March), dropping by 1.36 mnt or 7.6% compared with 17.91 mnt in mid-March 2026.

Inventories dropped by 790,000 tonnes (t) or 4.6% compared with the 17.34 mnt in late-February. Furthermore, inventory levels rose by 1.32 mnt or 8.6% y-o-y against 15.23 mnt a year ago.

Market participants noted that with the Qingming holiday approaching, buyers remained cautious, limiting restocking activity. Procurement was largely need-based, with no significant stockpiling observed, leading to a drop in inventories.

Production volumes

The average daily crude steel production of CISA-affiliated mills stood at 1.992 mnt in late-March, which decreased by 1.7% from 2.03 mnt in mid-March 2026. Furthermore, on a y-o-y basis, output fell by 6.2% y-o-y.

Average daily finished steel production reached 2.058 mnt, increasing by 3.8% from 1.984 mnt in mid-March. However, this level dropped by 4.7% y-o-y.

Average daily pig iron production stood at 1.812 mnt in late-March, marking a decrease of 0.1% from 1.814 mnt in mid-March. Output declined by 3.4% from the same period last year.