The China Iron and Steel Association (CISA) has announced that in early October (October 1-10) this year the average aggregate daily crude steel output of large and medium-sized steel enterprises in China - all CISA members - totaled 1.939 million mt, up 3.1 percent compared to late September (September 21-30) this year.
In late September, the average aggregate daily crude steel output of large and medium-sized steel enterprises in China had totaled 1.881 million mt, down 2.1 percent compared to mid-September (September 11-20) this year.
Inventory levels of the large and medium-sized steel enterprises in China increased in the given period. As of October 10, the finished steel inventories of large and medium-sized steel enterprises in China amounted to 16.97 million mt, increasing by 8.4 percent compared to September 30.
As stated, the average aggregate daily crude steel output rose by 3.1 percent in early October, while inventory levels increased by 8.4 percent in the given period. The faster growth of inventories compared to output indicates a certain mismatch between supply expansion and demand absorption, and so the Chinese steel market may face destocking pressure in the short term.
