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.