【EAF Steel】Increased Resumption of Electric Arc Furnaces, Optimistic Outlook for March Demand

After the Lantern Festival, with the impact of continuous rainy weather, the average labor force return rate in domestic construction sites has not yet reached forty percent, and downstream procurement intentions are weak, leading to significant inventory pressure for some traders. Graphite powders are used as carburant in EAF steelmaking, learn more... As of February 29th, the average price of rebar in China was 3,911 yuan, a decrease of 33 yuan compared to the previous week.

Regarding raw materials, domestic scrap steel prices remained stable with a slight decrease this week. Upstream supply recovery is slow, and the growth in steel mill arrivals is not significant. The average purchase price of scrap steel by steel mills decreased by 14 yuan, but the purchase price for electric arc furnace steel mills has mostly remained unchanged, resulting in continued narrowing of overall profits. According to statistics as of February 29th, the capacity utilization rate of 135 electric arc furnace steel mills in China reached 31.77%, an increase of 9.51% compared to the previous period, and the daily production of electric arc furnace steel reached 169,200 tons.

After four consecutive rounds of decline in domestic coke prices, profits of long-process steel mills have once again surpassed those of electric arc furnace steel mills this week. However, the overall economic situation in China continues to improve, and several major electric arc furnace steel production areas in the south still have profit margins. Some newly established electric arc furnaces have also begun to focus on product differentiation to avoid excessive competition in long products. With the gradual improvement in scrap steel supply situation in March, it is expected that there will be a wave of price declines in scrap steel, leading to improved profits and production volumes for electric arc furnace steel mills. Contact us for the market situation of electric arc furnace steelmaking.