[SMM Analysis] EAF Steel Mills Plan to Reduce Operating Hours

Published: Jun 24, 2026 10:08

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As of June 23, the operating rate of the 50 EAF steel mills nationwide that mainly produce construction steel stood at 41.3%, down 0.48% WoW; the capacity utilization rate was 43.0%, down 0.08% WoW; and daily average construction steel production was 95,700 mt, down 200 mt WoW.
During the survey period (June 17 – June 23), EAF mills in most regions maintained their existing production pace, with operating hours essentially stable. Only some individual mills in the southwest region flexibly adjusted production hours, leading to a slight decline in the operating rate. Meanwhile, some EAF mills planned long-term production suspensions, resulting in a 0.48% WoW decline in the national EAF mill operating rate this week.
Looking ahead, persistent rainy weather in south China will affect outdoor construction at end-user sites, and downstream procurement is expected to be mainly rigid demand-driven. Inventory pressure at EAF mills is increasing, and with prices under pressure, per-mt steel profitability is unlikely to improve. According to the survey, EAF mills in both east China and south China plan to reduce operating hours going forward. The overall national EAF operating rate is expected to continue declining in the next period.

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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