Operating rates of blast furnaces across Chinese steelmakers edged up 0.07 percentage point on week

SHANGHAI, Dec 31 (SMM)—An SMM survey showed that the average operating rate of BFs at steel mills in China inched up 0.07 percentage point on the week to 88.5% as of December 31. This was 0.01 percentage point lower than the same period last year. 

The new coronavirus variant continued to spread this week. In addition to the United Kingdom, Japan, South Africa, the Philippines and Indonesia have also imposed entry restrictions on foreigners. A few cases have also been confirmed in Beijing, Liaoning and Jiangsu, which raised market concerns.

However, on Tuesday, the Ministry of Industry and Information Technology said that crude steel output should be reduced to ensure a year-on-year decline, and this lent some support to steel prices. Demand in north China muted due to sharp falls in local temperatures. Operating rates of electric arc furnace (EAF) is likely to rise significantly in the near term as restrictions on electricity consumption have been lifted, which is likely to raise supply pressure. Apparent consumption is expected to continue to fall next week. Steel prices are likely to weaken after the New Year’s holiday.

Operating rates of BFs at Chinese steel makers