The operating rate of BFs was stable at 91.38% in the week ending October 27, SMM survey showed. The capacity utilisation rate averaged 92.58%, down 0.1 percentage points WoW. The daily average pig iron production of sample steel mills was 2.203 million mt, down 2,300 mt WoW. Due to recent losses and environmental protection-related production restrictions, some steel mills started maintenance of BFs in advance. Meanwhile, there was restart of BFs from maintenance. Therefore, the overall operating rate of BFs remained stable. However, pig iron production declined slightly.
Looking at the week ending November 3, SMM tracking data showed that if scheduled restart of some BFs unfold, the operating rate of BFs will increase, and the pig iron production will inch up. Rising iron ore prices may lead to more losses of steel mills. In addition, environmental protection-related production restrictions will probably take place. Under this circumstance, the operating rate may miss expectations.
