[SMM Analysis] The supply-demand imbalance in construction steel is showing signs of emerging this period.

Published: Jun 11, 2026 10:55

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According to SMM statistics, both mill inventories and social inventories experienced inventory buildup to varying degrees. Total construction steel inventory reached 7.8605 million mt, up 62,700 mt MoM, or up 0.8% MoM, with the inventory inflection point gradually emerging.

On the supply side, some EAF steel mills halted electric furnace production and underwent rolling line upgrades, leading to a slight MoM decline in the national electric furnace operating rate. Meanwhile, blast furnace steel mills saw their per-mt steel profit hold above the break-even line most of the time, keeping production enthusiasm high and causing total construction steel output to shift from decline to increase this period. On the demand side, this period coincided with the college entrance examination period in various regions, where construction sites within a certain range were ordered to halt operations. Additionally, market speculators largely maintained a wait-and-see sentiment, and end-user procurement was mostly driven by low-price rigid demand. According to SMM statistics, both mill inventories and social inventories experienced inventory buildup to varying degrees. Total construction steel inventory reached 7.8605 million mt, up 62,700 mt MoM, or up 0.8% MoM, with the inventory inflection point gradually emerging.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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