【EAF Steel】Steel Prices Stable as Long Holiday Approaches for EAF Mills

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】Steel Prices Stable as Long Holiday Approaches for EAF Mills

This week, China's construction steel market operated steadily. Downstream users have mostly entered the final stage of operations, overall transactions were sluggish, and most traders remained cautious toward the futures rebound on Thursday, continuing to prioritize shipments and cashing out. As of January 29, the national average price of rebar stood at RMB 3,218/ton, down RMB 1 from the end of last week.

On the raw materials side, China's scrap steel market was generally stable with slight increases this week. The average purchase price of medium-grade scrap at steel mills rose by RMB 2 to RMB 2,150/ton (tax-exclusive). Most EAF steel mills are operating near the break-even point. Given rising shipment pressure, the number of mills suspending production and taking holidays continues to increase. According to statistics, as of January 29, the capacity utilization rate of 135 EAF steel mills nationwide was 42.11%, down 1 percentage point week-on-week, with EAF steel output at 275,900 tons per day.

Judging from EAF steel mills' holiday schedules, many mills in northern China had already suspended production earlier. Some mills in Fujian began shutting down for holidays from late January, while mills in Sichuan, Jiangsu–Zhejiang, and Guangdong are mainly scheduled to suspend production and take holidays between February 6 and February 10. As a result, EAF steel output is expected to decline significantly next week. Meanwhile, many steel mills will continue scrap steel procurement until about one week before the Spring Festival, using time to gain flexibility in completing their winter stocking plans.

BOF Steel Cost and EAF Steel Cost

Average EAF Cost and Profit

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