Operating Rates of Blast Furnaces Fell 0.1% on Week

SHANGHAI, Aug 27 (SMM) — Operating rates of blast furnaces at steel mills fell 0.1% on the week and 0.2% from a month ago to 81% as of August 26, SMM survey showed. Steel output and blast furnace operating rates were at low levels amid reduction of crude steel. Operating rates of blast furnace are expected to fall slightly in September amid maintenance. 

Environmental restrictions are likely to be stricter at steel mills and coking plants as the environmental inspection panel is stationed in Shandong, supporting steel prices. According to the China Iron and Steel Association, crude steel output at key mills stood at 21.378 million mt in mid-August, with a daily output of 2.137 million mt, down 1.07% year on year. Meanwhile, steel output came in at 20.6 million mt, with a daily output of 2.06 million mt, down 0.32% on the year. On the demand side, auto production have declined for three consecutive months due to the shortage of chips, rising raw material prices and weak demand. 11 key car companies produced 707,000 cars in early to mid-August, down 34.3% on the year. The shortage of chips cannot be resolved in the short run due to worsening Covid-19 pandemic in Southeast Asia. Weak supply and demand continues in the steel market. Market is likely to see fluctuations.