According to SMM statistics, the average operating rate of blast furnaces was 95.25% last week, flat from the previous week. The capacity utilisation rate stabilised at 96.41%. The daily average pig iron output of sample steel mills was 2.31 million mt, up 100 mt from the previous week. Last week, the number of blast furnaces resuming production and that of blast furnaces undertaking maintenance were basically the same.
This week, as end-user demand gradually enters the seasonal low, steel mills in south-west, north-west, and north China find it increasingly difficult to sell finished products. Therefore, inventories are rising. This will force some steel mills to cut output this week, and the average operating rate of blast furnaces is expected to decline slightly.
