SHANGHAI, Nov 9 (SMM) - The pig iron output loss from blast furnace maintenance added 1.01 million mt or 20% MoM in October. Since October, the unleash of end demand has fallen short of expectations in the seasonal high. Firm costs and falling steel prices hurt the profit margins of steel mills, driving them to carry out maintenance. In the second half of October, some steel mills suffered losses of 200-300 yuan/mt. As a result, pig iron output declined in October due to extending steel mill maintenance.
At the beginning of November, steel mills suffered a loss of 200 yuan/mt on average. Steel mills in north China are likely to be subject to production restrictions in the heating season. Therefore, more steel mills are expected to put their blast furnaces under maintenance this month.
