[Blast Furnace Operating Rate] Fewer blast furnaces resuming production, affecting pig iron output growth

According to the SMM survey, as of May 22, the operating rate of blast furnaces was 93.17%, up 0.19% MoM. The capacity utilization rate of blast furnaces was 94.87%, up 0.25% MoM. The average daily pig iron output of sample steel mills was 2.2688 million mt, up 5,600 mt MoM.

Figure 1: Blast Furnace Operating Rate & Capacity Utilization Rate

Data Source: SMM

During this period (May 16-May 22), three blast furnaces resumed production, with no new blast furnaces undergoing maintenance. The resumed blast furnaces are located in North China, North-west China, and East China (for detailed data, please refer to the SMM Blast Furnace Maintenance VIP Table). This week, steel mill prices have been stable with a slight increase, and steel mill profits have remained steady, with some mills resuming production as planned. Looking ahead, although coke saw its first round of price cuts on Tuesday, the recent strong performance of coke and iron ore futures suggests limited room for further improvement in steel mill profits. With the traditional off-season for steel consumption approaching in June and July, it is expected that pig iron output will gradually peak. According to SMM maintenance statistics, pig iron output consumption is expected to decline next week.