Utilization of domain capacity in China has increased despite calls for restrictions

Blast furnace capacity utilization among 247 Chinese steelmakers averaged 83.61% on March 29-April 3, up 0.85 percentage points from the previous week, according to Mysteel.

The average daily pig iron production at these enterprises increased by 22.7 thousand tons per day, or 1% per week, to 2.24 million tons per day.

The success of local steel mills in negotiating a gradual reduction in coke purchase prices helped some of them to restore profitability, so their enthusiasm for production volumes has increased. As of April 3, about 33% of the 247 steel mills surveyed managed to make some profit from steel sales. The level of profit at that time was the highest this year.

The daily consumption of imported iron ore at 247 steel mills reached 2.73 million tons per day between March 29 and April 3. The total stocks of imported raw materials at the enterprises, as well as ore supplies to the country’s ports, continued to grow. As of April 3, imported iron ore reserves at these enterprises reached 92.8 million tons, which will be enough for 34 days at the current level of utilization.

As GMK Center reported earlier, China will continue to regulate steel production in 2024. This was announced by the National Development and Reform Commission (NDRC), without specifying the timing or extent of the restrictions. The regulator, together with the National Bureau of Statistics, the ministries of industry and information technology, ecology and environmental protection and emergency management, will work with relevant parties to manage production this year.

Earlier, the China Iron and Steel Industry Association (CISA) called on steel mills to reduce production intensity in line with the goal of meeting customer needs and the principle of balancing supply and demand. The steelmakers were asked to take into account steel sales and business performance.