China's daily crude steel output totaled 2.11 million tons during the first 10 days in May, decreasing by 3.6% compared to the corresponding period a month ago.

During the same period, finished steel inventories at steel mills and major spot markets monitored by the China Iron and Steel Association (CISA) reached 26.88 million tons, up by 4.8% from the end of April and 9.5% year-on-year. The rebar inventory increased by 15% year-on-year to 4.39 million tons.

With warmer weather expected from June to August, the off-season for steel demand is approaching, putting pressure on the already high inventory levels in the steel market, said a market participant.