The new blast furnace production capacity in H2 2024 is still increasing, and the ironmaking capacity is increasing

In H1 2024, steel consumption remained sluggish, with overall demand continuing to run weak. Some steel mills' blast furnaces continued to be shut down, dragging down the pig iron output for the entire H1. However, some steel mills went against the trend. According to the SMM survey, as of now, twelve new blast furnaces have been put into operation nationwide, with a total ironmaking capacity of 18.97 million mt. The new blast furnaces, with a volume of all above 1,200 m³, are mainly concentrated in North and East China, with relatively fewer in other regions. Synchronously, 24 blast furnaces have been decommissioned, with a total ironmaking capacity of 19.15 million mt. Most of the decommissioned blast furnaces are small ones with a volume of below 1,000 m³. The specific situation is as follows:

According to the blast furnace production plans tracked by SMM, there are still 15 new blast furnaces scheduled to be put into operation in H2 2024, with a total ironmaking capacity of 19.75 million mt. The volume of these blast furnaces is mostly concentrated in the range of 1200-2000 m³, mainly in Central China, North China, and Southwest China. The specific situation is as follows:

Based on the blast furnace replacement in H1, the requirements for blast furnace capacity replacement have become stricter this year. When new blast furnaces are put into operation, the old capacity being replaced must be withdrawn in advance or simultaneously, and simultaneous production of new and old capacities is not allowed. Therefore, when new blast furnaces are put into operation in H2, the old capacity will also be withdrawn simultaneously. According to SMM tracking data, 15 blast furnaces will be withdrawn in H2 2024, with a total ironmaking capacity of 13.09 million mt.

According to existing statistics, some production plans in 2024 still cannot be completed on time. It is estimated that the new ironmaking capacity in 2024 will be about 38.72 million mt, while the eliminated ironmaking capacity will be about 32.24 million mt. SMM will continue to track China's actual blast furnace capacity in 2024 in real-time.