[SMM survey] Few blast furnaces underwent maintenance in June, making it difficult for pig iron production to decline significantly

According to SMM survey data,11 blast furnaces underwent maintenance in May, resulting in a daily pig iron production reduction of 54,300 mt.Concentrated blast furnace maintenance mainly occurred in north and east China. Meanwhile,5 blast furnaces resumed production, increasing daily pig iron output by 19,900 mt. North China saw the most concentrated production resumptions. SMM survey data shows blast furnace maintenance in May caused a net pig iron production decrease of 4.2803 million mt, down 360,300 mt MoM from April. The daily average pig iron output at month-end dropped 32,200 mt MoM from April's month-end level.

SMM tracking survey indicates that3 blast furnaces are scheduled for maintenance in June, which will reduce daily pig iron production by 12,800 mt. Conversely,6 blast furnaces are expected to resume operations, adding 32,300 mt to daily output. Based on current statistics, blast furnace maintenance in Juneis projected to affect total pig iron production of 4.2527 million mt,down 27,600 mt from May. Pig iron output in June is estimated to drop back slightly. According to SMM's daily pig iron production forecast,sample steel mills' daily output reached approximately 2.42 million mt on June 25, edging down MoM from May's month-end level.

Entering June, south China entered flooding season, coupled with national college entrance exam impacts slowing construction progress. Meanwhile, manufacturing entered its traditional off-season, with end-use demand for steel products expected to decline significantly. Affected by these factors, steel mill profits may decrease further, potentially leading to more blast furnace maintenance. SMM expects actual June blast furnace maintenance scale to exceed current levels. SMM will continue weekly tracking of relevant developments.