The operating rate of BF steel mills was up 0.44% WoW at 90.04% as of December 13, SMM survey showed. With a new round of BF-related maintenance, pig iron production may decline again towards the end of this month.
According to SMM survey of 34 EF steel mills that mainly produce construction steel, their operating rates averaged 55.53% as of December 12, up 0.44 percentage points WoW. Looking forward, Underpinned by recent profits, steel mills will have great incentive to produce goods in a short run, but will show no sign of a large production hike, in light of issues related to manpower, electricity costs, demand, etc. It is expected that the operating rate of EF steel mills may stabilise in a short term.
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