China's hot metal output to peak in Nov'24

MySteel: Daily hot metal production among the 247 Chinese blast-furnace (BF) steelmakers sampled in Mysteel's regular survey rebounded in October, and the daily output is expected to continue climbing this month, Mysteel suggests in its latest monthly report on domestic BF operations.

Specifically, daily hot metal output of the sampled mills averaged 2.34 million tonnes/day last month, 101,400 t/d or 4.5% higher than September's daily average of 2.24 million t/d.

As many as 35 BFs at mills covered in Mysteel's survey resumed operations after routine maintenance last month, mostly in early and mid-October, and the rise in the average daily hot metal output was much larger than expected, according to the report.

"The production enthusiasm among mills was bolstered by the significant improvement in their profit margins and numerous stimulus measures unveiled by the government," a market watcher based in Shanghai explained.

During the current month, seven BFs with a total pig iron capacity of 26,900 t/d are scheduled to be reignited, while the same number of BFs will be taken offline for overhauls. Their total capacity is slightly larger however, at 29,600 t/d, Mysteel's findings showed.

Daily hot metal output at Chinese mills usually peaks in October and then slips as the traditional slow season for steel consumption in winter kicks off. However, the seasonal decline seems to be delayed this year due to the positive signs emerging in the macro-economy, the report said.

Given that optimism still lingers in the market and the majority of mills are profitable, Mysteel forecasts that average daily hot metal production among the 247 surveyed steelmakers will rise to 2.37 million t/d in November, up by 21,600 t/d or 0.9% from October's daily average.

In addition, if more fiscal pump-priming policies are introduced during China's legislative meeting to be held next week, the steelmakers will continue to keep their rates of production high, the report said. Daily hot metal output among the 247 sampled BF steelmakers could peak at 2.38 million t/d sometime this month, it added.

Note: This article has been written in accordance with an article exchange agreement between MySteel Global and BigMint.