EAF steel: Steel plants continue to suppress scrap steel, conducive to the short-term increase in EAF production

This week, China's construction steel market transaction volume was flat, and under the great pressure of the epidemic, the reduction of inventory in some markets is obviously not smooth. With the resumption of production of blast furnaces and EAFs in some steel plants, steel market supply and demand pressure increases, prices continue to fall. Graphite electrode is widely used in electric furnace steel smelting, view more... As of October 21, China's rebar average price was 3956 yuan, down 97 yuan from last week.

This week, China's scrap market continued to follow the fall. Compared with last week, the scrap steel average purchase price in the steel plant decreased by 43 yuan to 2662 yuan. The prices of some major steel plants fell by more than 100 yuan. Scrap steel enterprises generally operated with light inventory, steel plants and base arrival volume generally fall. Under the recent environmental protection limit of some steel plants in Hebei Province and the continuous price reduction of major steel plants in southern China, the profit of independent main producing areas of EAF steel in Jiangsu, Sichuan, Guangdong and other provinces has increased steadily. With scrap steel arrival volume increased significantly in the first half of this month, EAF plants' production enthusiasm has been improved. According to statistics, EAF steel capacity utilization rate of 135 steel plants in China this week was 41.91%, an increase of 2.73% compared with last week, and EAF steel output was 235100 tons/day.

Since September, China's financing for real estate has been strengthened, but it is still at a low level and will take some time to pass on to property companies. At the same time, this year's temperature drop in the northern region has been ahead of schedule, and even steel plants in Xinjiang have stopped production in a large area.  Coupled with the impact of the epidemic, steel manufacturers still lack confidence. In late October, China's steel market is expected to be dominated by weak and stable operation, with limited room for continuous increase of electric furnace steel output. Contact us to learn the follow-up reports of steel market.