[Blast furnace operating rates] Steel mills profits reduced and pig iron output grew at a slower pace

The average operating rate of blast furnaces rose by 0.15 percentage point from a week ago to 92.13% as of Apr 30, SMM survey showed. The average capacity utilisation rate stood at 93.53%, up 0.22 percentage point WoW. The daily average pig iron output of the steel mills in SMM’s survey sample stood at 2.2363 million mt last week, an increase of 5,900 mt from the previous week.

Figure 1: Blast furnace operating rates & Capacity utilisation rate

Data source: SMM

Figure 2: Resumption of blast furnaces & maintenance of blast furnaces

Data source: SMM

Figure 3: Pig iron output forecast

Data source: SMM

During this period (Apr 25-May 1), three blast furnaces were overhauled and four were resumed. Recently, the price of raw materials rose rapidly, steel mills' profits have been reduced, and some steel mills formulated corresponding maintenance plans. The increase in pig iron output slowed down but still showed an upward trend.

Looking at the next cycle, according to SMM's current tracking, under optimistic circumstances, some blast furnaces still have plans to resume production, and the increase in pig iron will be relatively obvious; but considering the recent decrease in steel mill profits and the possibility of a fourth round of coke price increases, which will squeeze steel mill profits again. Some steel mills may formulate maintenance plans, and blast furnace operating rate and pig iron output growth may be lower than expected.

SMM242 blast furnace operating rates are freshly released.