【SMM Steel】Nippon Steel begins BF to EAF conversion at Kyushu Works

According to SMM statistics, both mill inventory and social inventory experienced varying degrees of buildup. Total construction steel inventory reached 8.2329 million mt, up 213,600 mt WoW (up 2.66% WoW), further intensifying inventory pressure.

Building materials social inventory: According to the SMM survey, the buildup of total building materials social inventory accelerated this period. As of July 2, 2026, SMM building materials social inventory stood at 5.4852 million mt, up 131,700 mt WoW, a 2.46% increase. Affected by the plum rain weather in south China, waterlogging at project sites hindered construction. Additionally, steel mills in south-west China faced considerable inventory pressure and have recently been shipping to central and north-west China. Regional social inventory: Currently, inventory performance diverged across regions. Inventory buildup was notable in south-west and north-west China, while east China saw a decline. By region, steel mills in Sichuan faced prominent inventory pressure and have been gradually shipping to surrounding markets. Moreover, overall demand in south-west China was relatively weak, accelerating market inventory buildup. In north-west China, concentrated arrivals of resources from the south-west recently made it difficult to sell locally high-priced resources. Coupled with falling prices, downstream procurement remained cautious, leading to clear inventory accumulation. In east China, some steel mills underwent maintenance or production cuts recently, and arrivals of external resources decreased, resulting in a slight inventory decline. Entering the demand off-season, short-term social inventory will continue to experience seasonal buildup.