WEEKLY: Chinese BF mills' production retreats slightly

• Output dips amid government curbs in North China
  
  
• Margins improve as steel prices strengthen
  
  

MysteelGlobal: After rising for five weeks straight, hot metal production among Chinese blast furnace (BF) steelmakers pulled back slightly during April 17-23, as some mills in North China were observing government-mandated production curbs, Mysteel's survey showed.

Over the latest survey period, the average capacity utilization rate among the 247 BF steelmakers under Mysteel's tracking stood at 89.7%, lower by 0.1 percentage point from the previous week, with the combined hot metal production edging down by 0.1% on week to 2.39 million tonnes/day.

During the same period, the average operational rate of these 247 mills also dipped 0.2 percentage point on week to 83.1%, the survey results showed.

Some steelmakers in Tangshan in North China's Hebei province were required by local authorities to reduce production during April 16-19 to ease air pollution in the city, Mysteel Global learned.

Consequently, the total consumption of imported iron ore by the 247 BF mills under Mysteel's tracking averaged 2.96 million t/d during April 17-23, slightly lower by 0.2% from the previous week.

As of April 23, the total inventories of imported iron ore in all forms - including those at mills, in transit and at ports - held by the same 247 mills thinned by 0.5% from a week earlier to 88.8 million tonnes, the survey showed. The existing stocks would be sufficient to last these mills for 30 days at their current usage rate, shorter by 0.1 day compared with the previous survey period, according to Mysteel's assessment.

On the other hand, domestic BF mills saw their operation margins improve mildly last week, thanks to the strengthening of the prices for finished steel products, Mysteel's survey showed.

China's national spot price for HRB400E 20mm diameter rebar was assessed by Mysteel at Yuan 3,392/tonne ($497/t) including the 13% VAT by April 23, higher by 1.5% on week.

As of the same day, around 50% of the 247 BF steelmakers under Mysteel's monitoring could make some profits on selling their steel products, higher by 2 percentage points from a week earlier.

Note: This article has been written in an article exchange agreement between MysteelGlobal and BigMint.