Steel Scrap Consumption by BF Mills Drops After Soaring in Apr

SHANGHAI, May 11 (SMM) - SMM survey showed that in the new sample, the average operating rate of blast furnaces stood at 93.31% as of April 30, down 0.74 percentage point MoM. The daily consumption of steel scrap across 110 BF mills surveyed by SMM was 204,700 mt in April, up 1.8% MoM. At the beginning of April, the average operating rate of blast furnaces reached a peak of 95.25%. However, the rapid decline in steel prices led to a fall in their profit margins, so since mid-April, mills in north and north-west China have begun to reduce production. Therefore, the steel scrap consumption by BF mills dropped after soaring during the month. The steel mills may still gain low profits in May, and they will reduce their production as required, leading to a low steel scrap consumption.