Average Operating Rate of Blast Furnaces Dipped 1.94 Percentage Points to 93.31% as of April 26

SHANGHAI, May 4 (SMM) - The average operating rate of blast furnaces dipped 1.94 percentage points to 93.31% as of April 26, according to SMM research. The average capacity utilisation rate of blast furnaces dipped 1.65 percentage points to 94.76%. The daily average pig iron production of sample steel mills was 2.27 million mt, a decrease of 39,500 mt. When it comes to combined factors including inventory pressure, shipment pace, and construction steel prices, steel mills in north, south-west and north-west China were under great pressure and took the lead in stopping production. It is expected that the operating rates of blast furnaces may further decline after the Labour Day holiday.

Operating rates across 34 EAF mills that mainly produce construction steel in China stood at 41.06% as of April 25, down 4.09 percentage points compared with the previous week. The capacity utilisation rate fell 4.08 percentage points to 44.39%. The daily rebar output fell 7,300 mt to 86,600 mt. The falling finished steel prices drove some EAF-based steel mills to reduce the production to ease the losses and thus the average operating rate dropped 4.09 percentage points to 41.06%. The overall losses of domestic EAF-based steel mills intensified, leading to the intensive maintenance of electric furnaces. Some steel mills had plans to stop the production. Given the relatively low raw material stocks, the falling finished steel prices and the weak downstream demand, the operating rates of electric furnaces will continue to decline slightly post the holiday.