Winter curbs, import expo lower Nov operating rates at blast furnaces in steel mills

SHANGHAI, Dec 10 (SMM) – Operating rates across blast furnaces in steel mills in China edged down in November as many regions began winter production curbs and as the import expo in Shanghai at the start of the month affected operation at some mills in the east.

The average operating rate across 486 blast furnaces in 110 mills, with total pig iron capacity of 586.05 million mt, came in at 86.41% in November, down 0.82 percentage point from October and is expected to extend decline to 86.29% in December, SMM data showed.

In addition to the 28 cities in northern China that implemented winter curbs last year, some cities in central and eastern China also began production restrictions this year, which lowered the average operating rate in November.

The month-on-month decline in the operating rates was marginal as mills used more scrap to support steel output.

In November, steel prices fell with some products down 800-1,000 yuan/mt as less strict winter curbs kept supplies at highs.

Despite a smog season that may prompt authorities to deepen output cuts, steel prices are expected to remain weak amid a seasonal lull that would grow inventories of steel products.