Rising BOF Activity Signals Potential Supply Shifts in China’s Steel Market

Introduction: Shiheng Special Steel Group Co., Ltd., based in Shandong, China, is witnessing an increase in operational activity primarily driven by its Basic Oxygen Furnace (BOF) operations. This integrated steel manufacturer has a crude steel production capacity of 4,650,000 tonnes and caters to sectors needing finished rolled products like construction steel and reinforcement materials.

Activity Trends: Recent satellite data indicates a noticeable upward trend in the activity of Shiheng’s Basic Oxygen Furnace (BOF_0).

Between November 2024 and April 2025, the activity levels in BOF_0 escalated from 72% to 78%, reflecting a robust operational pulse. This increase aligns with broader market dynamics, where Chinese companies are adjusting production amid complex external factors, as noted in the article “Chinese steel giant urges to avoid strict production controls.” The necessity for stabilization in production levels is echoed across the market.

As the country’s largest steel producer navigates potential production cuts due to overcapacity and weak demand, Shiheng’s operational uptick may influence supply patterns within the steel market.

Implications for Steel Buyers and Market Analysts: The rising activity at Shiheng indicates potential shifts in supply dynamics amidst a backdrop of increased emissions and energy consumption reported in early 2025. Analysts should monitor the impacts of this operational spike, particularly as companies like Baosteel warn of challenges ahead. If operational efficiencies at Shiheng translate to increased outputs, this could alleviate some of the envisioned production cutbacks in the industry, potentially affecting pricing and availability of key steel products. Awareness of fluctuating activity levels will be crucial for stakeholders as they navigate the evolving landscape of the steel market in China.