Graphite electrodes are vital consumables in electric arc furnace (EAF) steelmaking, mainly used for arc heating. With superior electrical conductivity and high-temperature resistance, they are key to improving both the output and quality of EAF steel.

【EAF Steel】Scrap Prices Show Resilience, EAF Production Cuts Intensify

This week, the overall steel market fluctuated narrowly. Influenced by the outcome of the China-U.S. negotiations, sentiment improved in the second half of the week, but actual transactions remained modest. Demand for construction steel continued to weaken due to weather conditions. As of June 12, the average rebar price in China stood at RMB 3,138/ton, down RMB 2 from the previous weekend.

On the raw materials side, China's scrap steel market experienced weak supply and demand this week, with prices showing minor fluctuations. The average scrap purchase price by EAF steel mills rose RMB 4 to RMB 2,116/ton (excluding tax), further widening the losses. As a result, EAF mills intensified production cuts this week, with some southern mills shifting to nighttime off-peak production.

Statistics show that as of June 12, the capacity utilization rate of 135 EAF steel mills in China was 50.26%, down 1.21% from the previous week. EAF steel output fell to 314,600 tons per day, marking the fourth consecutive weekly decline.

Recently, China's scrap steel prices have shown slightly stronger trends compared to hot metal, increasing cost pressure on EAF mills. With more hot and rainy weather and sluggish recovery in real estate demand, EAF mills still face significant production and sales pressure. It is expected that EAF steel output will continue a slight downward trend until mid-July.

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