Operating rates of blast furnaces across Chinese steelmakers rose 0.1 percentage point on week

SHANGHAI, May 21 (SMM)—Operating rates of blast furnaces at Chinese steel mills stood at 86.9% as of May 20, an increase of 0.1 percentage point from the week before and 1.1 percentage points month-on-month, SMM survey showed. Although steel prices fluctuated this week, profits of steel makers were not affected. Mills free from production restrictions operated normally. 

The Standing Committee of the State Council has made arrangements to ensure the supply and price stability of bulk commodities, and the state has issued policies to strive for stable economic development. Premier Li Keqiang presided over an executive meeting of the State Council, which pointed out that unreasonable increases in commodities prices should be curbed.  Driven by this, ferrous metals futures plunged Wednesday night.  Since this week, the National Development and Reform Commission has stepped up its efforts to formulate a carbon peaking action plan by 2030. On May 18, Vice Premier Han Zheng emphasised that China will continue to vigorously promote capacity reduction in key industries. The National Development and Reform Commission will organise an on-site inspection team to investigate capacity reduction across steel mills, which is expected to affect output at some mills.

Steel prices are likely to extend gains amid rising overseas demand and raw materials prices.

Operating rates of blast furnace at Chinese steel makers