BaoSteel increases the price of sheet metal for the third month in a row

On the supply side, China’s blast furnace utilization rose 5.1% YTD to 70.4%, with average daily crude steel production at major steel mills reaching 2.14 Mt (+ 5.7% YoY) ) at the end of June. While the supply burden is expected due to the deepening off-season, it should soon decrease. Meanwhile, the price of iron ore is expected to remain high in the second half of 2020 and become a major variable in determining whether blast furnace operators can improve profitability.