Operating rates of BF steel mills edged down due to annual maintenance of some BFs, while the increase in operating rates of EF steel mills significantly slowed down

The operating rate of BF steel mills was down 0.15% WoW at 90.63% as of November 29, SMM survey showed. Looking at this week, the second round of coke price increases will squeeze steel mills' profits again. In addition, there will still be scheduled annual maintenance of some steel mills. Therefore, the operating rate of BF steel mills may still dip this week.

According to SMM survey of 34 EF steel mills that mainly produce construction steel, their operating rates averaged 54.74% as of November 28, up 0.97 percentage points WoW. Currently, upward momentum of production of EFs ended. Output hike in some areas will be offset by electricity issues-induced output drop in southwest China, the operating rate of EF steel mills may remain stable this week.