[SMM Blast Furnace Operating Rate] As maintenance and resumption slowed down, pig iron production slightly decreased

According to the SMM survey, as of June 19, the operating rate of blast furnaces surveyed by SMM was 93.91%, flat WoW. The capacity utilization rate was 95.78%, down 0.07% WoW. The average daily pig iron output of the sample steel mills was 2.2905 million mt, down 1,800 mt.

Image 1: Blast Furnace Operating Rate & Capacity Utilization Rate

Data source: SMM

According to an SMM survey, during this period (June 13-June 19), one blast furnace was under maintenance and one blast furnace resumed production. As we enter the off-season for consumption, end-user demand is generally weak. Some steel mills reported severe inventory accumulation, with some conducting temporary maintenance to reduce inventory. This week, pig iron output also showed a slight decline. However, according to SMM tracking, local steel mills' profits are recovering. If the previously maintained blast furnace resumes production as planned next week, pig iron output will see a significant increase. Nevertheless, with continuous news about crude steel reduction and concerns over steel mill inventory pressure, steel mills may formulate temporary maintenance plans. It is expected that next week's pig iron output increase may be lower-than-expected.