[SMM Analysis] Construction Steel Market Falls into Weak Supply-Demand Dynamics; Inventory Pressure Intensifies

Published: Jul 2, 2026 10:48

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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.

During the current period, construction steel production at both BF and EAF steel mills declined to varying degrees. Many EAF mills reduced their operating hours, while BF mills either operated at lower loads or advanced maintenance on blast furnaces and associated rolling lines, leading to a continuous decline in total national construction steel output. Demand side, south China remained in the rainy season, with continuous rainfall in many areas hindering normal outdoor construction activities. Meanwhile, as construction steel prices continued to fall, market confidence was damaged, with trading and speculative sentiment subdued and a widespread wait-and-see stance. End-user procurement was mostly limited to low-priced rigid demand. 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.

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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