[SMM analysis] the operating rate of blast furnace has dropped for four consecutive weeks, and the market has rebounded sharply as scheduled.

Published: Jul 8, 2020 20:28

According to SMM research, the operating rate of blast furnace in the second week of July was 90.1%, down 0.06% from last week. It is estimated that the operating rate will pick up slightly next week.

Since the beginning of this week, the stock market has risen sharply, and market sentiment has picked up somewhat. Superimposed with the news that the Brazilian president has unfortunately infected with the new crown, the market is worried about the contraction of the ore supply side and rekindled the enthusiasm for long ore. Today, the iron ore 09 contract increased by 53000 hands, up 2.74%, continuing to lead the rise in black. Rebar futures also broke through 3700 points, reaching a seven-month high. At present, the contraction of the supply side of steel mills is still continuing. according to the latest research data of SMM, as of July 7, the operating rate of independent electric arc furnace steel mills reached 73.24%, down 4.49% from the same period last week and 11.52% from 84.76% in the same period in June. On the demand side, the market is generally worried that the rainstorm and the college entrance examination will affect the release of short-term demand, but from the actual transaction data, the release of demand is not pessimistic. Driven by strong futures, traders are enthusiastic about replenishment. The trading volume of building materials in the past two days is more than 250000 tons. Once the late weather comes out, demand is expected to recover strongly.

In the context of abundant liquidity and good macro-economy, it is expected that this round of steel price rebound is expected to continue.

Fig. 1 the operating rate of blast furnace has dropped slightly for four consecutive weeks.

Source: SMM Steel

 

Specific research feedback:

Steel mill A (East China): part of the hot metal has been transferred to produce strip steel, and the strip steel profit is slightly better.

Steel mill B (South China): production is normal at present and there is no maintenance plan.

Steel mill C (Huazhong): the output of building materials has decreased, hot metal has been transferred to hot and cold rolling, and the inventory is high.

Steel plant D (southwest): normal full-load production, now the output is the historical peak, inventory has increased, later may be scheduled for maintenance, but has not yet set a time.

Steel plant E (North China): 4000m3 blast furnace shutdown and maintenance is not over, other rolling lines take turns for maintenance.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
Zhangye Establishes Waste Lead-Acid Battery Collection Entity with 2,000 mt/year Capacity
May 9, 2026 20:23
Zhangye Establishes Waste Lead-Acid Battery Collection Entity with 2,000 mt/year Capacity
Read More
Zhangye Establishes Waste Lead-Acid Battery Collection Entity with 2,000 mt/year Capacity
Zhangye Establishes Waste Lead-Acid Battery Collection Entity with 2,000 mt/year Capacity
[Waste Lead-Acid Battery Market Dynamics] It was reported that one waste lead-acid battery collection and storage entity has been established in Zhangye City, Gansu Province, namely Zhangye Mingcheng Waste Battery Recycling Co., Ltd., which has obtained the Hazardous Waste Operating License issued by the Department of Ecology and Environment of Gansu Province. The approved operating method and category is the collection (HW31, 900-52) of waste lead-acid batteries, with an operating capacity of 2,000 mt/year. A total of 4 waste lead-acid battery collection sites have been set up across the city.
May 9, 2026 20:23
Feihushan Lead-Zinc Mine Project Advances in Heilongjiang, Aims for 300,000 mt Annual Ore Capacity
Apr 23, 2026 19:50
Feihushan Lead-Zinc Mine Project Advances in Heilongjiang, Aims for 300,000 mt Annual Ore Capacity
Read More
Feihushan Lead-Zinc Mine Project Advances in Heilongjiang, Aims for 300,000 mt Annual Ore Capacity
Feihushan Lead-Zinc Mine Project Advances in Heilongjiang, Aims for 300,000 mt Annual Ore Capacity
[Lead-Zinc Ore Market Dynamics] A project advancement meeting for the Feihushan lead-zinc mine was held this week in Huzhong District, Heilongjiang, chaired by Guan Jingjun, Deputy Secretary of the District Party Committee and District Governor. The total investment for the Feihushan lead-zinc polymetallic mine development project is expected to be 396.7111 million yuan, with all required funds to be self-raised by the enterprise. Upon completion, the project will have an annual capacity of 300,000 mt of raw ore (including 200,000 mt of lead-zinc ore and 100,000 mt of iron ore). The mineral processing products will be lead concentrates, zinc concentrates, and iron ore concentrates, with a service life of 14 years (excluding a 4-year construction period).
Apr 23, 2026 19:50
Yingkou FTZ to Approve 5,000 mt/year Waste Lead-Acid Battery Collection Project
Apr 23, 2026 19:27
Yingkou FTZ to Approve 5,000 mt/year Waste Lead-Acid Battery Collection Project
Read More
Yingkou FTZ to Approve 5,000 mt/year Waste Lead-Acid Battery Collection Project
Yingkou FTZ to Approve 5,000 mt/year Waste Lead-Acid Battery Collection Project
[Waste Lead-Acid Battery Market Dynamics] It was reported that the website of the Yingkou Area of the China (Liaoning) Pilot Free Trade Zone recently published the "Public Notice of the Management Committee of the Yingkou Area of the China (Liaoning) Pilot Free Trade Zone on the Acceptance of the Environmental Impact Assessment Report for the Waste Lead-Acid Battery Collection (5,000 mt/year) Project of Fenghuan (Yingkou) Environmental Technology Co., Ltd." Upon completion, the project will have a waste lead-acid battery turnover capacity of 5,000 mt/a and a maximum storage capacity of 100 mt.
Apr 23, 2026 19:27
[SMM analysis] the operating rate of blast furnace has dropped for four consecutive weeks, and the market has rebounded sharply as scheduled. - Shanghai Metals Market (SMM)