[SMM Blast Furnace Operating Rate] Pace of Production Resumption of Blast Furnaces Slows Down, Pig Iron Production Continues to Decline

According to the SMM survey, as of June 18, the operating rate of blast furnaces at 242 steel mills surveyed by SMM was 87.70%, down 0.45 percentage points MoM. The capacity utilisation rate of blast furnaces was 89.10%, down 0.41 percentage points MoM. The daily average pig iron production of the sampled steel mills was 2.4084 million mt, down 6,500 mt MoM.

During this period, there were no blast furnace maintenance activities, and one blast furnace resumed production, mainly concentrated in the Henan region. Steel mill profits are currently diverging, with moderate profits in the Hebei and Shanxi regions of north China, but some steel mills in the north-east and north-west China regions are experiencing inverted profits, particularly in the Liaoning and Xinjiang regions. However, the overall willingness of steel mills to conduct maintenance is currently weak. Looking ahead to the next period, it is expected that one blast furnace will undergo maintenance, and three blast furnaces will resume production, mainly concentrated in the Liaoning, Inner Mongolia, and Jiangsu regions, with a slight increase in overall pig iron production.