China: Steel inventories and production rise in early-April'26

• Inventories rise as demand weakens
  
  
• Production mixed, but overall output declines y-o-y
  
  

Steel Inventories at key China Iron and Steel Association (CISA) industries stood at around 17.51 million tonnes (mnt) in early-April 2026 marking an increase of 960000 tonnes (t) or 5.9% compared with 16.55 mnt in late-March 2026.

Inventory level dropped by 300,000 t or 1.7% m-o-m compared with from early-March. Furthermore, inventory levels rose by 1.47 mnt or 9.2% y-o-y against 16.04 mnt a year ago.

The mismatch between sluggish demand and higher in the domestic market lead to an increase in inventory level as automobile production declined and sales weakened overall demand, infrastructure contributed only modest support, and buyers remained cautious, adopting a wait-and-see approach.

Production volumes

The average daily crude steel production of CISA-affiliated industries stood at 2.104 mnt in early-April showing an increase of 5.6% from 1.992 mnt in late-March 2026. Furthermore, on a y-o-y basis, output fell by 4.2% y-o-y.

Average daily finished steel production reached 1.954 mnt, decreasing by 5.1% from 2.058 mnt in late-March. However, this level dropped by 4.4% y-o-y.

Average daily pig iron production stood at 1.892 mnt in early-April, marking an increase of 4.4% from 1.812 mnt in late-March. Output declined by 3.1% from the same period last year.