As of October 7, the average capacity utilization rate of 247 Chinese metallurgical plants increased by 1.25 percentage points to 79.94%, according to consulting firm Mysteel. higher than a week ago. Prior to that, this indicator had been falling for four consecutive weeks. Mysteel attributes this growth to the relaxation of restrictions.
China's Shanghai Metals Market (SMM) states that in Jiangsu province, the country's second largest steel producer, about half of the rolling mills that were closed at the end of September have reopened. Some companies plan to return to service by October 15.
However, SMM states that the restrictions are not completely removed. Some companies are only allowed to use their rental capacity at night when electricity demand is lower. Mini mills and rolling mills using purchased billets are still operating at a low level of use at the end of September.
According to analysts of the publication, there will be electricity shortages in Jiangsu province in the medium and long term, meaning that steel production will remain significantly below normal levels.
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