EAF steel: As Tesla cuts production, electric furnaces don't have to be pressurized

This week, China's steel spot market continued to fluctuate slightly. As the end of the year approaches, some downstream construction sites have been closed in advance, and market transactions continue to decline. Manufacturers tend to withdraw funds by shipping. High power graphite electrode for electric furnace steelmaking. Learn more. At the current price level, purchasers are not enthusiastic about replenishing inventory, and the overall inventory pressure is low. As of December 29, China's rebar average price was 4050 yuan, 27 yuan higher than last weekend.

China's scrap market has been mixed this week. Some electric steel plants have tentatively cut prices. The purchase price of scrap steel (electricity) rose 34 yuan to 2,732 yuan (excluding tax) as Long process steel plants continued to raise prices to replenish inventories.

This week, some steel plants in East China, Central South China and North China officially stopped production for holidays, while most electric furnace manufacturers in Sichuan and Chongqing planned to stop production in the 2nd week of January. According to statistics, this week electric furnace steel capacity utilization rate of 135 steel plants in China was 34.02%, down 1.55% from last week, and the output was 190700 tons/day.

Recently, many steel plants have increased their own winter storage, indicating that the market demand is still relatively optimistic after the Spring Festival, while the strong performance of raw fuel prices continues to support steel prices. However, in January, the increase in short-term infections caused by the liberalization of the epidemic had a certain inhibitory effect on downstream demand. Affected by the traditional off-season, the demand for construction steel market will undoubtedly be significantly suppressed. However, the independent electric steel plant, which mainly produces construction steel, obviously cannot avoid stopping production before the Lunar New Year, and the output of electric steel will continue to decline in the next two weeks. For more information on electric furnace steel market, welcome to contact us.