Electric-Furnace Mills See Mixed Earnings; Some Boost Profits by Adjusting Specs and Raising Prices

Published: Mar 17, 2026 17:46

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As of March 17, the operating rate of 50 electric-furnace steel mills nationwide mainly producing construction materials was 38.64%, up 3.26% WoW; the capacity utilization rate was 39.87%, up 10.53% WoW; and daily average production of construction materials was 88,800 mt, up 23,500 mt WoW.

During the survey period (March 10–17), downstream work resumptions steadily advanced, and rigid demand slightly improved WoW, but overall demand remained in the recovery stage. Market wait-and-see sentiment was still strong overall, and transactions had yet to see a significant volume increase.

This week, some electric-furnace mills effectively improved profitability by adjusting product specifications and adopting price-premium strategies, offsetting the cost pressure brought by rising steel scrap prices and achieving a slight rebound in earnings. However, the profitability of most electric-furnace mills declined WoW, and enterprises showed a strong willingness to control costs. Looking ahead, as the resumption of production at electric-furnace mills continues, steel scrap consumption will further increase, while the rebound room for finished steel prices remains limited. Electric-furnace mill profitability is expected to continue to fluctuate rangebound, and the operating rate of electric furnaces may rise only slightly next week.

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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