Operating Rate Held Steady; Electric Furnace Mills May Face Phased Production Pressure Ahead

Published: Apr 7, 2026 17:40

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As of April 7, the operating rate of 50 major construction material-producing electric furnace steel mills nationwide was 41.42%, flat WoW; the capacity utilization rate was 42.6%, flat WoW; daily average production of construction materials was 94,900 mt, flat WoW.

During the survey period (March 31–April 7), the overall operating rate of electric furnace mills nationwide remained stable, with fluctuations being relatively small. Currently, profitability of construction material products among electric furnace enterprises showed some divergence. Some enterprises have already fallen into losses due to high raw material costs and declining finished product prices, while others maintained a certain profit margin through strategies of adjusting product specifications and price premiums.

Production and operations side, some electric furnace mills are already facing weak shipments and profitability under pressure. Additionally, South China has entered the rainy season, and the rainy and overcast weather conditions will further affect downstream construction progress. If profitability continues to deteriorate going forward, electric furnace enterprises may potentially reduce their operating hours.

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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