Steel production by Chinese producers has remained strong and stable in three months, although profit margins have declined when finished steel prices began to decline sharply from mid-May.
Another study shows that blast furnace utilization at 247 Chinese steel mills rose to 91.41% as of May 28, an increase in the eighth week and a further 0.54 percentage points in the past two weeks.
Among the six oblasts and regions surveyed, the increase in daily consumption of imported sinter fines was most noticeable at factories in Tangshan in Hebei Province in northern China, with average daily consumption rising to 120,100 t /d on June 2, recovering by 18,800 t /d. d or 18.6% of the indicator as of May 19. Consumption has declined in the previous two survey periods, the data showed.
“While most of Tangshan’s factories still strictly adhere to government directives to reduce their steel production capacity, they have increased production in the past two weeks after the government temporarily relaxed restrictions on sinter plants twice between May 12-14 and May 18. 22, ”said an analyst from Shanghai. She added that the daily consumption of imported sinter fines by these mills had dropped sharply in the previous survey period due to time constraints.
As a result, the stocks of imported sinter fines, stockpiled at the same 64 Chinese steel mills, decreased from May 20 to June 2 to 16.2 million tonnes, down 793,900 tonnes or 4.7% from the total stocks as of May 19. At current consumption rates, the existing tonnage should be sufficient to keep them in working order for about 26 days, which is three days less than in the previous study.
“Chinese mills are wary of purchasing imported iron ore given falling steel prices, and many of them choose to restock in small quantities only for their short-term production. That is why their stocks have decreased slightly. “