- China’s BF steel output rises, though growth pace slows.
- Weakening margins may curb steel production in coming weeks.
Mysteel Global: Production among Chinese blast furnace (BF) steelmakers continued to rise during the past week, but the pace slowed, according to Mysteel’s latest survey.
During 22-28 May, the average capacity utilization rate among the 247 BF steel producers under Mysteel’s tracking inched up for the third straight week by 0.1% point to 90.4%, with their combined hot metal output also edging up 0.1% on week to 2.4 million tonnes/day.
Over the same period, the average operational rate among these 247 mills stood unchanged from the previous week at 84.1%, the survey showed.
Some steelmakers that had completed their maintenance work and resumed operations in the previous week further lifted their production in the latest survey period, Mysteel Global noted.
In parallel with the rising hot metal output, the total consumption of imported iron ore by the 247 BF mills Mysteel tracks also increased slightly by 0.1% from the prior week to 2.96 million t/d during 22-28 May.
By 28 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 climbed 0.1% higher on week to 88.4 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.
However, the growth in steelmakers’ production may not be sustained in the coming weeks, as the thinning profit margins as well as the approaching summer lull for steel consumption in the country are expected to dent mills’ producing enthusiasm, Mysteel Global noted.
As of 28 May, around 62% of the 247 BF steel mills Mysteel monitors could make some profits on selling their products, 1% point lower than the previous period.
Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.
Leave a Reply