【EAF Steel】Year-End Counterattack Beckons

This week, the domestic construction steel market mainly experienced narrow fluctuations. Influenced by the weakening trend in the futures market, terminal users showed increased wait-and-see sentiment in the latter half of the week, with many market transactions concentrated on some low-priced resources. Graphitized petroleum coke can be used for electric furnace steelmaking. As of November 30th, the average price of domestic rebar was 3980 yuan, down 26 yuan from the previous weekend. 

In terms of raw materials, the price of domestic scrap steel fell slightly this week. The average purchase price of steel mills for scrap steel (electric furnace material) was adjusted down by 3 yuan to 2586 yuan (without a ticket) compared to the previous week. The profit of electric furnace steel mills is still at a relatively high level. The arrival of scrap steel at steel mills has increased, and the production of electric furnace steel continues to rise. According to statistics, as of November 30th, the capacity utilization rate of 135 electric furnace steel mills nationwide was 50.65%, a month-on-month increase of 1.9%, and the production of electric furnace steel reached 300,000 tons/day, rising for 8 consecutive weeks. Some electric furnaces in East China and Central South that were previously under maintenance have resumed production.

Although the steel market consumption is gradually entering the traditional off-season, electric furnace steel mills have temporarily escaped from the cost disadvantage, and the profit situation is still acceptable. Coupled with the pressure on some small and medium-sized long-process steel mills to control production at the end of the year, it is expected that there is still room for short-term growth in electric furnace steel production. Welcome to contact us for the electric furnace steel market reports.