[SMM Blast Furnace Operating Rate] With Significant Improvement in Profits of Steel Mills, Pig Iron Production Continued to Rise

According to the SMM survey, on September 25, the operating rate of blast furnaces at 242 surveyed steel mills was 89.40%, up 0.65% WoW. The capacity utilisation rate of blast furnaces was 90.27%, up 0.51% WoW. The daily average pig iron production of the sample steel mills was 2.4252 million mt, up 13,600 mt WoW.

Image 1: Blast Furnace Operating Rate & Capacity Utilisation Rate

Data Source: SMM

Image 2: Pig Iron Production Forecast

Data Source: SMM

This week, one blast furnace underwent maintenance, while six resumed production. Recent improvements in end-user demand, coupled with rising steel prices, have significantly improved profits of steel mills. This has led to a notable slowdown in maintenance activities, with previously idled blast furnaces gradually resuming production, resulting in an upward trend in pig iron production.

Looking ahead to next week, current favourable macro news is expected to further drive up steel prices. This will strengthen the willingness to resume production of previously maintained blast furnaces, and pig iron production is expected to continue rising.

190 Sample Blast Furnace Operating Rate