【Mysteel Survey】Independent EAF Steel Output Down by Over 10% in China

This week, we surveyed the production situation of 87 independent electric arc furnace (EAF) steel plants (of which 76 produce construction steel) with the following results:

1. The average operating rate of 87 independent EAF steel plants nationwide was 68.43%, a decrease of 6.10% compared to the previous period, and a decrease of 4.11% year-on-year. The operating rates in the North, South, and Central regions dropped significantly, while the East region decreased slightly and the other regions remained stable.Learn more about graphite electrodes for EAF steelmaking.

2. The average capacity utilization rate of 87 independent EAF steel plants nationwide was 50.42%, a decrease of 5.84% compared to the previous period and a decrease of 19.19% year-on-year. The utilization rates in the North, South, and Central regions decreased significantly, while the East and Southwest regions decreased slightly, the Northwest region increased slightly, and the other regions remained stable.

3. The daily crude steel output of 87 independent EAF steel plants nationwide decreased by 10.38% compared to the previous period.

4. The weekly output of rebar and wire rod products decreased by 11.58% and 10.12%, respectively, among the 76 independent EAF steel plants that produce construction materials.

5. Among the 76 independent EAF steel plants that produce construction materials, 1.32% of steel plants made a slight profit, 32.89% were stable (some of which were due to production stoppages), and 65.79% were losing money.

From the data this week, it is clear that the operating rate and capacity utilization rate of independent EAF steel plants nationwide have decreased significantly. This is mainly due to the continuous decline in finished steel prices, exacerbating the losses of steel plants. Some EAF plants in the Central, South, and North regions have begun to shut down for maintenance during the holidays, with most expected to last for over 15 days. Other EAF plants continue to reduce production time and lower production saturation. Looking ahead to next week, some steel plants plan to start shutting down for maintenance today, and the operating rate and capacity utilization rate of independent EAF steel plants are expected to further decline. For more  about EAF steel market dynamics, welcome to contact us.