The China Iron and Steel Association (CISA) has announced that in late June (June 21-30) this year the average aggregate daily crude steel output of large and medium-sized steel enterprises in China - all CISA members - totaled 2.024 million mt, down 3.6 percent compared to mid-June (June 11-20) this year.
In mid-June, the average aggregate daily crude steel output of large and medium-sized steel enterprises in China had totaled 2.1 million mt, up 0.8 percent compared to early June (June 1-10) this year.
Inventory levels of the large and medium-sized steel enterprises in China decreased in the given period. As of June 30, the finished steel inventories of large and medium-sized steel enterprises in China amounted to 16.28 million mt, decreasing by 9.1 percent compared to June 20.
The bigger decrease in inventory levels compared to the decline in crude steel output in late June signals that inventory replenishment ran smoothly in the given period. In particular, according to the data issued by CISA, stocks fell sharply in northeast and east China, decreasing by 21.8 percent and 13.3 percent compared to mid-June, respectively. Steelmakers in northeast China actively reduced inventories by cutting production. Meanwhile, since super-typhoon Bavi is approaching, some construction sites have rushed to speed up construction activities, resulting in destocking in east China.