During the same period, daily hot metal output among these sampled steelmakers also lost 32,500 tonnes/day or 1.4% on week to 2.35 million t/d, while their operational rate also reversed from the prior week’s uptick and dropped 1.34 percentage points on week to 79.67%, according to the survey.
Four BFs in Northwest China have been shut off this week for maintenance work, which was a main drag on the country’s total hot metal output, the survey showed. Accordingly, daily consumption of imported iron ore among the surveyed steel mills Mysteel tracks averaged 2.88 million t/d during November 10-16, lower by 35,100 t/d or 1.2% on week.
Meanwhile, steelmakers continued procuring iron ore on a steady pace to meet their immediate production needs, Mysteel Global noted.
By November 16, total imported iron ore stocks held by these 247 steel mills edged up 0.5% on week to reach 90.5 million tonnes, which is sufficient to last them 31.5 days at the current use rate, longer by 0.5 day than in the previous period, Mysteel assessed.
However, steelmakers in North China’s Tangshan slightly lifted production in response to their improved steel margins in recent two weeks, Mysteel Global learned. During November 10-16, some 29% of the sampled 247 steel mills were able to earn some profits on steel sales, higher by 8 percentage points on week, Mysteel’s other survey showed.
“One blast furnace in Tangshan’s Fengnan district has been brought back online this week, and local mills currently have no maintenance plan for the near term,” a market analyst based in Shanghai said. “The BF capacity use in Tangshan is likely to remain at a high level next week,” she believed.
