[SMM Blast Furnace Operating Rate] Concentrated resumption of blast furnaces leads to slight increase in pig iron output

According to the SMM survey, on June 26, the operating rate of blast furnaces was 94.5%, up 0.59% WoW. The capacity utilization rate of blast furnaces was 96.33%, up 0.55% WoW. The average daily pig iron output of the sample steel mills was 2.3025 million mt, up 12,000 mt WoW.

Image 1: Blast Furnace Operating Rate & Capacity Utilization Rate

Image 2: Pig Iron Forecast

This week, one blast furnace underwent maintenance, one blast furnace was replaced, and seven blast furnaces resumed production. From the current profitability of steel mills, the willingness for voluntary production cuts is low, and the number of blast furnaces under maintenance is relatively small. Together with the concentrated resumption of blast furnaces from previous maintenance, pig iron output is showing an upward trend again.

Looking ahead to the next week, some steel mills in North China will schedule maintenance plans. However, based on current tracking, a few large blast furnaces may resume production next week, and pig iron output still has the potential to increase. Considering the current off-season demand, the pressure on steel demand and inventory still exists, and some steel mills may temporarily schedule maintenance plans for blast furnaces. The pig iron output increase may be lower-than-expected.