[SMM Analysis] Off-Season Supply and Demand Both Weak, Building Materials Inventory Continues to Build Up

Published: Jul 30, 2026 13:07

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According to SMM statistics, mill inventory and social inventory showed slight divergence this period, as production cuts at steel mills led to a slight decrease in mill inventory, while social inventory continued to build up. Total building materials inventory was 8.4734 million mt, up 35,500 mt MoM (+0.42%), and the pace of inventory buildup further slowed.

Supply side this period, steel mills' comprehensive profit per mt of steel has been at low levels or even losses for a long time; a small number of blast furnace mills scheduled maintenance on building materials rolling lines, while EAF mills lowered operating hours, resulting in varying degrees of production declines at both BF and EAF steel mills. Demand side, affected by high temperatures and rainstorms, outdoor construction progress slowed down. According to feedback from end-user downstream enterprises, project bidding pressure is increasing, bidding prices are getting lower, newly implemented engineering projects remain few, and rigid demand support for building materials is limited. According to SMM statistics, mill inventory and social inventory showed slight divergence this period, as production cuts at steel mills led to a slight decrease in mill inventory, while social inventory continued to build up. Total building materials inventory was 8.4734 million mt, up 35,500 mt MoM (+0.42%), and the pace of inventory buildup further slowed.

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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