[SMM Analysis] Electric Furnace Operating Rate Continues to Decline This Week

Published: Jul 15, 2026 11:53

Save

As of July 14, the operating rate of 50 electric furnace steel mills nationwide that mainly produce construction materials stood at 36.58%, down 0.16 percentage points WoW; capacity utilization rate was 36.56%, down 0.09 percentage points WoW; and daily average construction materials production was 81,400 mt, down 200 mt WoW.
During the survey period (July 8–July 14), mill operating conditions varied slightly across regions. In detail, mills in Southwest and South China largely maintained their current production pace. In East China, some electric furnace mills were affected by typhoon “Bavi” over the weekend, with shipments disrupted and inventory pressure relatively high, leading them to reduce operating hours. In Central China, a few electric furnace mills faced tight steel scrap supply, and difficulty in procuring scrap also led to lower operations.
Looking ahead, short-term fundamentals for construction materials have relatively limited driving force, and prices will continue to fluctuate at low levels. Steel margins per tonne are unlikely to see significant improvement. Meanwhile, natural factors such as typhoons and floods occur frequently, limiting construction site activity, and end-use demand will most likely remain weak. Mills still face expectations of inventory buildup. Therefore, mills’ production enthusiasm is expected to be quite limited in the short term, and mills may continue operating on flat or off-peak electricity.

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.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

18 hours ago

[SMM HRC Arrivals] Arrival Ratio Increased Significantly This Period

18 hours ago

7.14 SMM Global Steel Daily Report

China Steel Export: [Flat products] Raw-material news lifts HRC export deals up 1 USD On July 14 China's HRC and other flat-product export prices rose 1 USD/tonne day on day, with HRC export deals at 486-492 USD/tonne FOB. Futures climbed quickly in the afternoon on raw-material headlines, but market feedback showed no clear pickup in actual enquiries or deals, with overseas markets still needing time to react. Some northern mills said heavy rainstorms kept them from issuing offers today, which may affect subsequent shipments. [Billet] Billet export FOB steady, Jiangyin at 456-459 USD On July 14 China's billet export FOB prices were largely steady, with Jiangyin port quoted at 456-459 USD/tonne. Market feedback indicated shipment slots generally booked into September, with a few orders pushed to October. China's price advantage versus Southeast Asia, India and Iran has narrowed, making high-priced Chinese export cargoes hard to sell, while mills showed limited appetite to take new orders, saying prices were unattractive. [Rebar] Rebar export offers steady, afternoon enquiries improve On July 14 China's rebar export offers held steady, with workable FOB prices at 480-485 USD/tonne. Market participants said futures rose in the afternoon, enquiries improved somewhat, and some traders concluded small volumes.

18 hours ago

[SMM Zhangjiagang Hot-Rolled Coil Inventory] Inventory Narrowly Accumulated This Week

This week, the hot-rolled coil inventory in Zhangjiagang was 280,000 mt, up 1,000 mt WoW, an increase of 0.36%; up 24.44% YoY.

18 hours ago