[SMM Analysis] The year of 2023 saw less-than-expected start-up of new capacity of BFs steel mills

The year of 2023 is the peak period for capacity replacement of steel mills. What is the status of blast furnaces (BFs) after half a year?

Here are details SMM sorted out about start-up and shut-down of BFs in the first half of 2023.

Ten BFs came on-stream in H1 2023, involving a total capacity of 15.71 million mt, of which, four in Hebei province, while ten BFs were eliminated for the same period, with a total capacity of 7.6 million mt. On the whole, production capacity increase in H1 2023 was 8.11 million mt.

The figure shown above says that large BFs replaced small ones in the past two years, leaving steel mills with more large ones.

In addition, there will be higher capacity utilization rate of BFs and larger output of BFs of the same type.

According to the original plan, there will be scheduled start-up of more than 50 BFs, but bearish market will dent the plan. SMM expects that ten BFs will be on-stream in the second half of the year.

SMM will continue to follow up on the actual production situation.