[SMM Blast Furnace Operating Rate] Steel Prices Weaken; Pig Iron and Pig Iron Production May Slightly Decline Next Week

According to the SMM survey, as of February 5, the operating rate of blast furnaces at 242 steel mills surveyed by SMM was 85.97%, up 0.37 percentage points MoM. The blast furnace capacity utilisation rate was 88.44%, up 0.59 percentage points MoM. The daily average pig iron production of the sample steel mills was 2.3791 million mt, up 15,000 mt MoM.

Compared with the week before the Chinese New Year, 4 blast furnaces were under maintenance, while 6 blast furnaces resumed production. The blast furnaces under maintenance were mainly located in north and south China, while those resuming production were primarily in east and central China. The gradual resumption of blast furnaces previously under annual maintenance led to a noticeable increase in pig iron production. Looking ahead to next week, 3 blast furnaces are expected to undergo maintenance, mainly in north China, while 3 blast furnaces are expected to resume production, primarily in north and central China. Considering the current pressure on steel mill profits and the impact of environmental protection-driven production restrictions, SMM's current tracking suggests that pig iron production may see a slight decline next week.