SHANGHAI, June 4 (SMM) - Operating rates of blast furnaces at steel mills increased 0.3 percentage point from a week ago and dropped 0.6 percentage point from a month ago to 86% as of June 3, SMM survey showed.

The operating rate of blast furnaces across the country has not changed significantly.

Operating rates of blast furnaces

Premier Li Keqiang pointed out on June 2 that based on the sore point of the market, it is necessary to promote the reform of "delegation, regulation and service" as a whole to further empower market entities, reduce improper intervention, strengthen fair supervision, improve fair competition, and optimise public services. It will encourage people dare to a business, and make market players dare to innovate and develop.

From a macro perspective, the sharp rise and fall of commodity prices are not conducive to the healthy development of the industrial chain. The policy interventions have gradually brought rationality to the market.

On the demand side, traders and downstream end users have adopted a cautious stance, focusing on on-demand procurement. In addition, demand in some industries has gradually weakened with the approaching of off-peak season. Therefore, steel prices lack momentum to rise.

Steel prices are likely to fluctuate and stabilise in the short term, under the impact of prices of raw materials including iron ore and coke, the international steel prices, and the inflations.