China: Chinese BF mills’ production rises on better profits

During 8-14 May, the average capacity utilization rate among the 247 BF steel producers under Mysteel’s tracking had increased 0.2% point from the previous week to reach 89.7%, while their combined hot metal production also rose 0.2% w-o-w to 2.39 million tonnes/day.

Over the same period, the average operational rate of these sampled 247 mills climbed 0.3% point higher w-o-w to 83.5%, the survey showed.

Chinese steelmakers ramped up their production after seeing the prices for finished steel products strengthen recently, Mysteel Global noted.

For example, China’s national spot price for HRB400e 20mm diameter rebar had touched the highest level since December 2024 at RMB 3,511/tonne ($517.5/t) including the 13% VAT as of 12 May before retreating to RMB 3,494/t on 14 May, according to Mysteel’s tracking.

Consequently, over 64% of the 247 BF mills under Mysteel’s monitoring could make some profits on selling their steel products by 14 May, higher by 4% points from a week earlier.

In parallel with the increase in hot metal production, the total consumption of imported iron ore by these 247 steelmakers edged up 0.1% w-o-w to 2.95 million t/d.

As of 14 May, the total inventories of imported iron ore in all forms – including at mills, in transit, and at ports – held by the same 247 mills also increased 0.1% w-o-w to 87.8 million tonnes (mnt), the survey showed. The existing stocks would be sufficient to last these mills for 29.8 days at their current usage rate, unchanged from the previous period, Mysteel assessed.

Steelmakers slightly cranked up their procurement of iron ore to meet their rising immediate production needs during the past week, Mysteel Global noted.

Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.