The operating rates of both BF and EF steel mills rose

According to SMM research, the operating rate of BFs was 90.78%, up 0.15 percentage points WoW. In spite of traditional lull steel demand, the market will still expect winter storage. In addition, steel traders and terminal companies may refill stocks in advance. Therefore, demand may mount. The operating rate of BFs may still trend higher.

According to SMM survey of 34 EF steel mills that mainly produce construction steel, their operating rates averaged 53.76% as of November 21, up 3.47 percentage points MoM. Looking forward, the arrival of off-season and manpower issues may constrain capacity utilization. Therefore, a rise in operating rate of EFs may slow down this week.