More Chinese Steel Mills Bring Blast Furnaces Back Into Operation After Steel Prices Rebound

SHANGHAI, Jun 16 (SMM) – According to SMM statistics, the average operating rate of blast furnaces was 93% this week, an increase of 0.29 percentage point from a week ago. The daily average pig iron production of sample steel mills was 2.26 million mt, an increase of 17,100 mt on a weekly basis. According to SMM research, one blast furnace was under routine overhaul this week, and three blast furnaces resumed production as planned.

Recently, with the recovery of steel prices, the profits of steel mills have been restored, thus their enthusiasm for production has increased and the output of pig iron rose. Judging from the current profit situation, the possibility of voluntary production cuts by steel mills is low. SMM also sees little possibility of mandatory production restrictions in the short term.

Next week, some steel mills in east, north and north-east China plan to resume production of blast furnaces. As such, it is expected that the operating rates of blast furnaces will still have room for a slight increase.