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China blast furnace usage rate on the decline

Blast furnace capacity utilization at Chinese steel mills fell due to maintenance outages at some mills in North and East China.

China blast furnace usage rate on the decline

247 Chinese steel mills' blast furnace (BF) capacity utilization rate fell for the fifth consecutive week, dropping by another 0.33 percentage points to 87.63% between November 24-30. This was mainly due to maintenance outages at some mills in North and East China.

Steel mills' daily hot metal output also fell 0.4% week-on-week to 2.34 million tons/day.

"Towards the end of the year, three large sized blast furnaces were temporarily shut down for routine maintenance," a market observer in Shanghai said. However, eight furnaces that were previously inactive were restarted after maintenance work was completed, he added.

During November 24-30, daily imported iron ore consumption by the surveyed steel mills averaged 2.87 million tons/day, down slightly by 0.2% from the previous week. Around 39% of the 247 sampled mills managed to make some profit on steel sales during November 24-30, the same percentage as the previous week.

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