[SMM Blast Furnace Operating Rate] As Steel Mill Profits Shrank, Resumption Pace Significantly Slowed Down

According to an SMM survey, on October 23, the operating rate of blast furnaces at 242 steel mills surveyed by SMM was 90.60%, up 0.13% WoW. The capacity utilisation rate of blast furnaces was 91.19%, up 0.1% WoW. The daily pig iron production of the sample steel mills was 2.4509 million mt, up 2,700 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 week, one blast furnace was under maintenance, and two blast furnaces resumed production. This week, with the fluctuation and decline in steel prices, steel mill profits shrank significantly, and the production enthusiasm of steel mills declined, leading to a significant slowdown in the resumption pace. Looking ahead, although steel consumption is entering the off-season and steel prices risk further decline, steel mills initiated the first round of coke price cuts this week, suppressing raw material prices. It is expected that short-term steel mill profits may remain stable. Therefore, in the short term, pig iron production of steel mills is expected to fluctuate rangebound next week.

190 Sample Blast Furnace Operating Rate