Graphite electrodes are the essential consumables in EAF steelmaking. Due to their outstanding electrical conductivity and excellent high-temperature resistance, they play a critical role in ensuring efficient and stable furnace operation, thereby improving steel production capacity and product quality.

【EAF Steel】Retreat to Advance, Optimize Structure

Since entering September, China's steel market demand has slightly improved. Coupled with growing expectations of a Federal Reserve interest rate cut, this has provided some support for steel prices. However, market inventory pressure remains heavy, and steel mill profits have generally narrowed, leaving sentiment cautious. As of September 4, the domestic average price of rebar stood at 3,196 yuan, down 6 yuan from last weekend.

On the raw material side, the scrap market rose steadily this week, driven by long-process steel mills raising prices to replenish stocks. The average purchase price of scrap for EAFs increased by 22 yuan from last week to 2,198 yuan (excluding tax), while losses for EAF mills expanded. According to statistics, as of September 11, the capacity utilization rate of 135 EAF steel plants in China was 45.39%, down 0.54% from the previous week. EAF steel output stood at 286,800 tons per day, marking the fifth consecutive week of decline.

Recently, profits and output at domestic EAF steel plants have continued to face pressure, partly due to weak real estate demand and partly because of the difficulty in reversing cost-side weakness. In this situation, some EAF steel plants in South China have chosen to transform by moving into special steel, while a few EAF steel plants in North China have announced plans to build hot-rolled capacity. Without policy-driven benefits, EAF steel plants can only seek breakthroughs first through product structure optimization.

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