The China Iron and Steel Association (CISA) reported that the average daily crude steel production of large and medium-sized steel enterprises in China rose to 2.159 million metric tons in early June (June 1-10), marking a 3.2% increase compared to late May (May 21-31). This follows a 4.9% decline in late May, when output had dropped to 2.091 million metric tons from mid-May (May 11-20).
Alongside the production rebound, steel inventories also saw an uptick. As of June 10, finished steel stocks held by major Chinese steelmakers reached 15.79 million metric tons, up 3.2% from May 31. The simultaneous rise in both output and inventories suggests a potential mismatch between supply and demand in the domestic steel market.
The fluctuations in production reflect ongoing adjustments in response to market conditions, including raw material costs and downstream demand. Analysts will be closely monitoring whether the increased inventory levels lead to price adjustments or production cuts in the coming weeks. The data highlights the continued volatility in China's steel sector, which remains a key indicator of industrial activity in the world's second-largest economy.
