Electric Furnace Mills Concentrated Holiday Entry, Operating Rate Plummets

Published: Feb 10, 2026 15:19

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As of February 10, the operating rate of 50 domestic steel mills mainly producing construction materials stood at 1%, down 38.72% MoM; capacity utilization rate was 19.41%, down 20.22% MoM; daily average production of construction materials was 43,200 mt, down 45,000 mt MoM.

During the survey period (February 3–10), domestic spot prices for construction materials remained in the doldrums. As the Chinese New Year holiday approached, the market gradually entered a pre-holiday lull, with widespread work stoppages at downstream end-user construction sites. Overall trading activity was sluggish, spot transactions continued to shrink, and many markets exhibited a situation of nominal prices with thin actual trading.

This week, domestic electric furnace steel mills collectively entered the Chinese New Year production halt period, with 38 additional electric furnace mills suspending operations for the holiday. The operating rate of electric furnaces pulled back rapidly, and construction materials production declined noticeably MoM. Based on production resumption plans, most idled mills in this round are scheduled to resume production around the Lantern Festival, and supply will remain in a contraction phase ahead of the holiday.

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