[SMM Blast Furnace Operating Rate] Increased Blast Furnace Maintenance Drives Continued Decline in Hot Metal Production

According to the SMM survey, as of September 23, the operating rate of blast furnaces at the 242 steel mills tracked by SMM stood at 88.76%, down 0.17 percentage points WoW. The capacity utilization rate of blast furnaces was 88.37%, down 0.18 percentage points WoW. Daily average hot metal production at the sampled steel mills was 2.3943 million mt, down 4,800 mt WoW.

According to this week's SMM survey, a total of 4 blast furnaces underwent maintenance during the period, located in Hebei, Shaanxi, and Shanxi; over the same period, 3 blast furnaces resumed production, mainly concentrated in Hebei and Shaanxi. Overall, the number of blast furnaces under maintenance slightly exceeded those resuming production, with production pace diverging across regions. Weighed down by worsening steel mill losses, steel mills' production enthusiasm weakened, and overall hot metal production trended downward. SMM tracking shows that the number of steel mills planning maintenance is gradually increasing. Especially after entering October, the decline in hot metal production may become more pronounced, with supply-side contraction expectations strengthening. Going forward, attention should be paid to the marginal impact of steel mill profit recovery, maintenance execution, and production resumption pace on hot metal production.