Operating rate of BF steel mills rose as profitability improved significantly

On November 15, the operating rate of BFs was up 0.73 percentage points WoW at 90.63%. The capacity utilisation rate was 91.95%, up 0.78 percentage points WoW. The daily average pig iron production of sample steel mills was 2.1999 million mt, up 21,900 mt WoW. Recently, taking cues from narrowing losses, steel mills’ enthusiasm for production picked up, boosting the operating rate of BFs. Looking at this week, underpinned by prolonged steel price uptick, some steel mills will turn around failing businesses, and have great incentive to produce goods. In addition, there will a plan of restart of some BFs from maintenance. However, there will be a question mark over iron ore demand, in view of environmental protection-related production limits and a slack season. The operating rate of BFs and pig iron output will probably fall short of expectations.