The China Iron and Steel Association (CISA) has announced that in late July (July 21-31) this year the average aggregate daily crude steel output of large and medium-sized steel enterprises in China - all CISA members - totaled 1.864 million mt, down 7.5 percent compared to mid-July (July 11-20) this year.
In mid-July, the average aggregate daily crude steel output of large and medium-sized steel enterprises in China had totaled 2.015 million mt, down 0.4 percent compared to early July (July 1-10) this year.
Inventory levels of the large and medium-sized steel enterprises in China decreased in the given period. As of July 31, the finished steel inventories of large and medium-sized steel enterprises in China amounted to 16.28 million mt, decreasing by 10.2 percent compared to July 20.
The big decline in CISA mills' daily crude steel output is a clear sign of proactive production reductions by steel mills. The steelmakers' output reductions contributed to the significant decreases in inventories in the given period, though inventories remained at relatively high levels. The key issue in China's steel industry is whether the output cuts and destocking will continue and whether demand for steel will improve in late August.
