Posted on 01 Mar 2023
Daily hot metal output among the 247 Chinese steel mills under Mysteel's tracking is likely rise further to around 2.37 million tonnes/day on average during March, when more blast furnaces (BFs) will resume production, according to Mysteel's latest report released on February 27.
In February, Mysteel's survey among the 247 mills showed that their daily hot metal output had increased by 3.5% on month to an average of 2.32 million t/d by February 27, given that mills in North, Northwest and Central China resumed operations on some of their BFs. Daily output has been steadily rising since mid-January, the data show.
During next month, 12 BFs with a total capacity of 41,000 t/d will be brought back online, while three BFs with a total capacity of 10,000 t/d will be idled while maintenance is conducted on them, according to Mysteel's survey.
In general, hot metal production at Chinese mills follows a seasonal pattern of rebounding gradually during February-April after staying low in January, as most mills tend to produce more finished steel in preparation for the coming robust season for steel consumption during March-April, Mysteel Global understands.
In addition, Mysteel's estimate for March hot metal output allows for the possible impact of environmental curbs on BFs in North China in cities such as Tangshan for the 'Two Sessions' political meetings in Beijing that will host commencing on March 4 and March 5.
In regions around the capital, local mills will be ordered to obey emergency production restrictions on their BF and sintering machine operations to ensure that air quality over the capital remains good during the staging of the events, Mysteel Global notes. The crucial national-level political meetings will last for a week.
In fact, steelmakers in Tangshan and Qinhuangdao, both in North China's Hebei, have been required to curtail their sinter production by 30-50% since February 25 and 26 respectively, and those in Handan, also in Hebei, had to reduce their sintering operation by 50% from February 26, Mysteel Global noted. So far, no production curbs have been introduced on mills' BFs, however.
Source:Mysteel Global
