[SMM Analysis] EAF Operating Rate Up 1.24% WoW This Week

Published: Jun 2, 2026 17:39

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As of June 2, the operating rate of 50 major construction steel EAF steel mills nationwide was 41.2%, up 1.24% WoW; capacity utilization rate was 42.70%, up 0.73% WoW; daily average production of construction steel was 95,100 mt, up 1,600 mt WoW.
During the survey period (May 27 - June 2), regional performance showed slight divergence. In east China, some steel mills slightly adjusted operating hours in the short term due to weakening market demand and considering the critical peak electricity period from July to August. In south China, steel mills frequently adjusted production hours, with the overall operating rate edging up slightly. In south-west China, some steel mills completed electric furnace technological transformation upgrades and resumed production at month-end in May, leading to the 1.24% WoW increase in the nationwide EAF operating rate this week.
Overall, construction steel prices had strong support in the short term, with EAF comprehensive profit per mt basically above the break-even line. Most steel mills are expected to maintain their current production pace. However, considering that some EAF steel mills in south China plan to resume production after maintenance, the EAF operating rate may continue to edge up.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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