【EAF】Post-May Day Survey Statistics on 

Independent Electric Arc Furnace Production in China

Here are the production statistics for 87 independent electric arc furnace (eaf) steel plants in China, with 76 of them specializing in the production of construction steel: 

1. The average operating rate of these 87 independent electric arc furnace steel plants in China was 65.01%, down by 0.41 percentage points compared to the previous period and down by 3.42 percentage points year-on-year. The Northeast region saw a notable increase, while the East China region saw a slight increase, and the South China region saw a slight decrease, with the rest of the regions remaining stable. Graphite electrodes for short-process EAF steelmaking, specifications can be referred to.

2. The average capacity utilization rate of these 87 independent electric arc furnace steel plants in China was 51.10%, up by 0.61 percentage points compared to the previous period and up by 0.67 percentage points year-on-year.There were slight increases in the Northeast, East China, North China, Central China, and Southwest regions, while the South China region saw a slight decrease, and the Northwest region remained stable.

3. The daily average crude steel production of these 87 independent electric arc furnace steel plants in China increased by 1.19% compared to the previous period.

4. Among the 76 independent electric arc furnace steel plants producing construction materials, the weekly production of threaded steel increased by 0.68%, and the weekly production of spiral steel increased by 1.80%.

5. The profitability of products from the 76 independent electric arc furnace steel plants producing construction materials in China is as follows: 30.26% of the steel plants made a slight profit, 57.89% of the steel plants remained stable (some due to production suspension), and 11.84% of the steel plants incurred losses.

This week, the operating rate of independent electric arc furnace steel plants in China decreased slightly, while the capacity utilization rate increased slightly. Some electric arc furnace plants underwent maintenance shutdowns this week, including one steel plant in Guangdong, South China, which shut down on the 25th, involving one 150-ton electric furnace; one steel plant in Jiangxi, East China, which began a one-week shutdown on the 1st, involving two 80-ton electric furnaces; and one steel plant in Guangxi, South China, which underwent maintenance on May 1st, involving one 120-ton electric furnace. At the same time, the profitability of some electric arc furnace plants improved, leading to their resumption of production. Specifically, one steel plant in Fujian, East China, resumed production on the evening of the 30th.

Prior to the holiday, there was mainly minor fluctuation in threaded steel prices, with finished product prices relatively stable and small fluctuations. Looking at scrap steel from the raw material side, prices weakened slightly with increased arrivals, and the difficulty of scrap steel collection at electric furnace plants eased slightly, leading to a slight improvement in profitability. This week's survey data also indicates that some electric arc furnace plants chose to increase operating hours and production saturation. The South China region is still affected by continuous rainy weather, leading some steel plants to reduce or suspend production. Looking ahead, steel plants in South China, Central China, and Southwest China may adjust their production schedules due to rainfall. Overall, spot trading during the holiday period was sluggish, downstream demand recovery was slow, and the market remained oversupplied. Combined with limited macroeconomic benefits, steel plant production enthusiasm was weak, leading to only a small increase in operating rates and capacity utilization rates in the future.

Looking ahead to next week, one steel plant in Jiangxi, East China, plans to resume production on the 8th, and one steel plant in Sichuan, Southwest China, plans to resume production on May 10th. It is expected that the operating rate and capacity utilization rate of independent electric arc furnace plants will increase slightly next week. For more information on the production and sales of electric furnace steel, welcome to contact us.