SMM

The operating rate of BF steel mills was up 0.59% WoW at 88.7% last week. The capacity utilisation rate was 89.02%, up 0.81% WoW. The daily average pig iron production of sample steel mills was 2.1317 million mt, up 21,200 mt WoW. Last week witnessed maintenance of 9 BFs and restart of 15 BFs. A recipe for the new maintenance was regional environmental protection-related production restrictions and regular annual maintenance. In a word, the operating rate of BFs edged up last week, increasing pig iron output.
Looking at this week, according to SMM's current tracking, less BFs will undergo maintenance. Moreover, some BFs with large capacity may resume operation as planned. Therefore, pig iron output may still increase. However, some steel mills’ plan of annual maintenance towards the Lunar New Year and the lingering production restrictions will make the operating rate of BFs and pig iron output lower than expected. On the whole, overall pig iron output may mount in January.