Graphite electrodes are key consumables in EAF steelmaking, ensuring efficiency and
quality with high conductivity and heat resistance.

【Electric Arc Furnace Steel】Anti-Overcompetition Sentiment Drives Output Stabilization

Due to high temperatures and heavy rainfall, construction activities in many regions of China were hindered this week, leading to a further decline in demand for construction steel. However, driven by the sentiment of "anti-overcompetition," products that had previously experienced significant price drops—such as steel, coal, and silicon—have rebounded. As of July 10, the average price of rebar in China was RMB 3,167 per ton, up RMB 20 from last weekend.

In terms of raw materials, the scrap steel market continued to show weak supply and demand this week. EAF (Electric Arc Furnace) steelmakers slightly raised their scrap purchase prices, though the increase lagged behind that of finished steel and ore/coke. EAF steelmakers' profits have increased for two consecutive weeks, but as this is currently the off-season for production, the trend of declining EAF steel output has not been reversed.

According to statistics, as of July 10, the capacity utilization rate of 135 EAF steel mills in China was 47.1%, down 1.03% from last week. EAF steel output fell to 295,600 tons per day, marking the eighth consecutive weekly decline.

Given the current situation, the "anti-overcompetition" sentiment is likely to persist throughout July. In some regions, capacity control policies previously proposed are being implemented in a timely manner. This is expected to provide short-term support for steel prices, and EAF steel output is anticipated to gradually stabilize and rebound after late July.

BOF and EAF Steel Cost Trend

Average EAF Steel Cost & Profit Trend

Weekly Scrap Steel Supply in China 

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