[SMM Blast Furnace Operating Rate] Increased Maintenance of Blast Furnaces Leads to Slight Decline in Pig Iron Production

According to the SMM survey, as of February 26, the operating rate of blast furnaces at 242 steel mills surveyed by SMM was 86.44%, up 0.15 percentage points MoM. The capacity utilisation rate of blast furnaces was 87.82%, down 0.21 percentage points MoM. The daily pig iron production of the sample steel mills averaged 2.3695 million mt, down 5,500 mt MoM.

During this period, three blast furnaces underwent maintenance, while five resumed production. The blast furnaces under maintenance were mainly located in Hebei and north-east China, while those resuming production were primarily in Shandong, Guangxi, and Hebei. Recently, steel prices weakened again, putting pressure on steel mill profits, and some steel mills have formulated annual maintenance plans. Overall, pig iron production showed a slight downward trend. For the next period, eight blast furnaces are expected to undergo maintenance, and eight are expected to resume production. The blast furnaces under maintenance will be concentrated in Hebei, Tianjin, and Xinjiang, while those resuming production will be mainly in Hebei and Xinjiang. Due to the impact of newly added maintenance, pig iron production is expected to continue its downward trend next week.