SHANGHAI, Sep 24 (SMM) — Operating rates of blast furnace (BF) at Chinese steelmakers rebounded this week, snapping a four-week losing streak, as some steel mills recovered from maintenance.

An SMM survey showed that BF operating rates across Chinese steel mills rebounded 0.2 percentage point from the prior week to 88.5% in the fourth week of September.

 Operating rates of blast furnace at Chinese steelmakers

The ferrous complex tumbled on Monday September 21 on the backdrop of mounting US-China tensions. Iron ore futures plunged as stricter environmental protection measures issued by Tangshan, a Chinese major steelmaking city, raised concerns on demand for iron ore, which dragged on other ferrous metals.

European stocks plunged more than 3% after British Prime Minister Boris Johnson announced late Tuesday to reimpose new restrictions on public life to curb the spread of coronavirus. Commodities prices also declined, with silver falling by its daily limit at one point. However, steel prices are unlikely to continue their sharp falls as it is approaching the National Day holiday.

A steelmaker in east China completed maintenance of blast furnace and restarted production, but it was bearish on the steel market in October, while another steel mill in north China may cut output in the near term due to thin profits and relatively high in-plant inventories, according to the SMM survey.