SHANGHAI, Aug 13 (SMM) — Operating rates of blast furnaces at Chinese steelmakers continued to dip this week due to some new maintenance.
An SMM survey showed that the average operating rate of BFs at steel mills in China lost 0.15 percentage point from the prior week to 89.9% in the second week of August.
Escalating US-China tensions and China’s credit, M2 money supply and social financing scale for July that all fell short of expectations weighed on ferrous metals.
Although operating rates of EAFs have increased recently, more BFs underwent maintenance, limiting the increase in steel supply. Excavator sales for July jumped 54.8%, and automobile output increased 21.9%, both on a yearly basis, suggesting sound recovery of downstream sectors. However, uncertainty over trades between the US and China may affect steel prices, and the estimated heavy rainfalls in Beijing, Tianjin, Hebei and surrounding areas are likely to curb demand in north China.
A steelmaker in north China resumed production this week after environmental restrictions ended, while another mill in the northeast plans to put a BF under maintenance for 40 days starting from August 10, according to the SMM survey.
Operating rates of blast furnaces at Chinese steelmakers
