SHANGHAI, Sep 29 (SMM) - The operating rates of blast furnaces at steel mills fell 2.76% on the week and 7.16% from a month ago to 73.84% as of September 29, SMM survey showed.
The operating rates of blast furnace declined sharply as Yunnan and Fujian sharply reduced production this week and the production restrictions policies remained tight, and are expected to fluctuate rangebound next week. 19 provinces have issued power rationing plans. The power consumption is likely to tighten in Q4 and steel supply to fall sharply. The output of construction materials fell sharply in September. Its transactions rose sharply amid pre-holiday restocking, supporting high steel prices. HRC supply was muted in September and its price increase was less than rebar. Besides, the downstream demand has also been affected by the power rationing policies. China’s capital market is closed for seven days during the National Day holiday and overseas markets operate normally. The merchants held a cautious outlook and the market sentiment is stable.