According to an SMM survey, as of December 11, the operating rate of blast furnaces at 242 surveyed steel mills was 86.23%, down 2.71 percentage points WoW. The capacity utilisation rate of blast furnaces was 87.57%, down 2.55 percentage points WoW. The daily average pig iron production of the sample steel mills was 2.3626 million mt, down 47,500 mt WoW.
Image 1: Blast Furnace Operating Rate & Capacity Utilisation Rate
Data Source: SMM
Image 2: Future Pig Iron Forecast
Data Source: SMM
During this period, a total of 13 blast furnaces underwent maintenance, with a significant increase in blast furnace maintenance at steel mills. The reasons for the maintenance include: firstly, most blast furnaces in north-west China are still in winter break; secondly, some steel mills are executing their annual maintenance plans; thirdly, in north China, especially Hebei, some steel mills were forced to shut down for maintenance due to environmental protection-driven production restrictions. Under the combined influence of these factors, the daily average pig iron production of blast furnaces significantly declined during this period. Looking ahead to next week, due to the continued impact of environmental protection-driven production restrictions and the recent pressure on steel mill profits, the operating rate of blast furnaces and pig iron production is expected to continue to decline.
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