[SMM Blast Furnace Operating Rate] More Blast Furnaces Under Maintenance, Pig Iron Production Declines Slightly

According to the SMM survey, as of May 14, the operating rate of blast furnaces at 242 steel mills surveyed by SMM was 88.63%, down 0.33 percentage points MoM. The capacity utilisation rate of blast furnaces was 90.45%, down 0.65 percentage points MoM. The daily average pig iron production of the sampled steel mills was 2.4403 million mt, down 17,600 mt MoM.

During this period, three blast furnaces underwent maintenance, with no blast furnaces resuming production. The blast furnaces undergoing maintenance were mainly concentrated in Jiangsu, Jiangxi, and the Wuhan region. According to SMM's tracking and understanding, recent blast furnace maintenance was mostly for regular annual inspections, and pig iron production showed a downward trend. Looking ahead to the next period, two blast furnaces will undergo maintenance, with no blast furnaces resuming production. The blast furnaces that will resume production are mainly concentrated in Shandong and Liaoning regions. Currently, except for a few steel mills, most steel mills still have profits, and their willingness to conduct voluntary maintenance is low. However, with raw material prices remaining relatively firm, steel mill profits may be compressed in the later period. Against the backdrop of crude steel production reduction, pig iron production may continue to decline in the later period.