SHANGHAI, May 11 (SMM) - In April 2023, the pig iron output loss from blast furnace maintenance dipped 1.54 million mt or 37% compared with March. Due to the gradual completion of real estate projects in April, the demand for finished steel weakened in an all-round way, hence the profits of steel mills turned to losses. SMM predicts that the more blast furnaces will carry out maintenance in May mainly due to poor profits and high inventory pressure in steel mills.
In April, the losses of steel mills intensified, mainly as the prices of finished steel fell more significantly than the prices of raw materials. According to the SMM cost model, the costs of steel mills dipped 59 yuan/mt month-on-month in April. SMM believes that due to the impact of the rainy season in May, the demand for construction material is expected to decline. Meanwhile, the supply may fall limitedly as the production cuts of steel mills have not been commissioned yet. As such, SMM expects that the profits of steel mills will continue to drop.
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