[Blast Furnace Operating Rate] With Losses Narrowing, Blast Furnaces Resumed Production as Planned

According to the SMM survey, on September 4, the operating rate of blast furnaces in 242 steel mills surveyed by SMM was 88.36%, up 0.13% WoW. The capacity utilisation rate of blast furnaces was 89.57%, up 0.02% WoW. The daily average pig iron production of the sample steel mills was 2.4064 million mt, up 400 mt WoW.

Image 1: Operating Rate & Capacity Utilisation Rate of 242 Blast Furnaces

Data Source: SMM

Image 2: Pig Iron Production Forecast

Data Source: SMM

During this week (8.29-9.4), 5 blast furnaces were under maintenance, and 6 blast furnaces resumed production. As the 7th round of coke price cuts was implemented last Thursday and iron ore prices have significantly dropped recently, the raw material cost pressure on steel mills eased. Some previously shut-down blast furnaces resumed production ahead of schedule. Despite this, the profitability of steel mills remains bleak, and some are undergoing a new round of maintenance. Overall, although pig iron production has increased, the growth is minimal.

Looking ahead to next week, as raw material prices may continue to decline, combined with the traditional peak season for the steel market in September, some blast furnaces plan to resume production, and pig iron production may increase significantly.

Operating Rate of Blast Furnaces in 190 Sample Steel Mills