SMM Blast Furnace Operating Rate: Steel mill losses rapidly expanded, and blast furnace operating rates significantly declined

According to the SMM survey, as of July 31, the operating rate of blast furnaces was 92.91%, down 0.7% WoW. The capacity utilization rate of blast furnaces was 94.94%, down 0.58%. The average daily pig iron output of the sample steel mills was 2.283 million mt, down 7,100 mt.

This week, five blast furnaces were under maintenance: two in east China, two in north China, and one in north-west China. Three blast furnaces resumed production: one in north-west China and two in east China. With the rapid decline in steel prices this week, steel mills' losses expanded quickly, significantly increasing their willingness to reduce production and conduct maintenance, leading to a noticeable drop in the operating rate of blast furnaces. Looking ahead, as the steel market is unlikely to see a significant short-term recovery and bearish sentiment is strong, it is expected that steel losses will continue, and the operating rate of blast furnaces in steel mills may further decline next week.