[SMM Blast Furnace Operating Rate] Steel Market Remained Sluggish, More Blast Furnaces Were Under Maintenance

As of August 28, the operating rate of blast furnaces in 242 steel mills surveyed by SMM was 88.23%, down 0.56% WoW. The capacity utilisation rate of blast furnaces was 89.55%, down 1.03% WoW. The daily pig iron production of the sample steel mills was 2.406 million mt, down 15,000 mt WoW.

Image 1: Blast Furnace Operating Rate & Capacity Utilisation Rate

Data Source: SMM

Image 2: Future Pig Iron Forecast

Data Source: SMM

During this period, six blast furnaces were under maintenance, including one in north-east China, two in north China, and three in east China. Four blast furnaces resumed production, including three in north China and one in east China. The end-user market for steel remained slightly sluggish this week, with steel mills continuing to incur losses, leading to an increase in blast furnace maintenance.

Looking ahead, with the continuous decline in upstream coke prices, the profits of steel mills have been somewhat restored. Additionally, as the traditional peak season for steel approaches in September, the production willingness of steel mills has improved, and the pig iron production of steel mills may rebound.

Operating Rate of Blast Furnaces in 190 Sample Steel Mills