[Blast Furnace Operating Rate] Steel mills resumed production as planned, and the blast furnace operating rate slightly increased

According to the SMM survey, as of May 29, the operating rate of blast furnaces was 93.61%, up 0.44% WoW. The capacity utilization rate of blast furnaces was 95.24%, up 0.37% WoW. The average daily pig iron output of the sample steel mills was 2.2776 million mt, up 8,800 mt WoW.

Figure 1: Blast Furnace Operating Rate & Capacity Utilization Rate

During this period (May 23-May 29), three blast furnaces resumed production, with no new blast furnaces undergoing maintenance. The resumed blast furnaces are located in North China, North-west China, and South China (for detailed data, please refer to the SMM Blast Furnace Maintenance VIP Table). This week, steel mill profits remained stable, and some mills resumed production as planned. Looking ahead, end-user steel consumption is moderate, and steel mills are still slightly profitable, with low willingness to reduce production for maintenance. However, considering the upcoming off-season for steel consumption and the annual maintenance plans of some mills, the average daily pig iron output of steel mills is expected to narrowly fluctuate in the short term. According to SMM maintenance statistics, the pig iron output of steel mills is expected to continue to grow slightly next week.