Operating Rates of Blast Furnaces across Chinese Steelmakers Up 0.2% on Week

SHANGHAI, Aug 19 (SMM)—Operating rates of blast furnaces at steel mills rose 0.2% from a week ago, but fell 0.1% from a month ago to 81.1% as of August 19, SMM survey showed.

Crude steel output in January-July fell 5.60 million mt in Hebei and 1.69 million mt in Tianjin, but the overall output rose over 50 million mt. The reduction policy will be tightened in autumn and winter seasons, especially Q4. The actual implementation plan must be adjusted in line with the demand situation. Operating rates of blast furnaces are expected to fluctuate slightly at low levels in late August.  Steel prices fell sharply as the market focus has shifted from supply expectations to demand expectations. Supply continued to shrink while demand fell sharply.

Real estate data was far below expectations, which seriously affected the market sentiment. The actual demand for steel products was sluggish, with supply and demand weakened further. The demand release has been delayed while iron ore prices fell sharply, futures and spot steel prices are difficult to increase. Demand is likely to increase in approaching the high season in September and October. Steel prices are likely to trend higher amid the marginal improvement of the steel market.