Electric arc furnace (EAF) steel: profit continues to rise and output steadily increases

This week, China's construction steel market rose first and then consolidated. After Monday's surge, the downstream enthusiasm for receiving goods was weakened. In addition, Pelosi's visit to Taiwan disrupted the financial market, resulting in a strong wait-and-see atmosphere in the market. In the second half of the week, the trading volume continued to decline, and the steel prices in some markets fell again. With excellent electrical and thermal conductivity, graphite electrode is widly used for EAF steelmaking.

As of August 4, China's rebar average price was 4177 yuan, up 78 yuan from last Friday. In terms of raw materials, scrap steel price overall increased this week, and scrap steel average price purchased by EAF steel plants increased by 134 yuan to 2675 yuan (excluding tax) compared with last week. After steel price growth slowed down, part of the South China scrap enterprises successively dumped their goods, the arrival volume of the bases and steel plants began to improve, and the number of steel plants resuming production further increased.  

According to statistics, this week, the utilization rate of 135 steel plants EAF steel capacity in China was 39.34%, up 3.93% from last week. EAF steel output was 220700 tons/day, up for two consecutive weeks.

At present, the steel market sentiment is still recovering, and the real estate reviving prospect is uncertain. Affected by the resumption of production of electric arc furnace steel plant, many manufacturers continue to be bearish on the market, and downstream users are also cautious in purchasing. Next week, China's EAF steel output is expected to continue to rise, and the profit will gradually narrow. 

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