[SMM Analysis] EAF Operating Rate Down 1.96% WoW This Period

Published: Aug 5, 2026 09:17

Save

As of August 4, the operating rate of 50 EAF steel mills in China primarily producing construction steel stood at 33.58%, down 1.96% WoW; capacity utilization rate was 33.67%, down 1.64% WoW; and daily average production of construction steel was 75,000 mt, down 3,600 mt WoW.
During the survey period (July 29 - August 4), the operating conditions of steel mills across multiple regions declined to varying degrees. Specifically, in east China, EAF mills reduced operating hours due to profitability losses, while some mills planned to halt production for nearly a month. In central China and south-west China, many mills cut operating hours amid difficulties in scrap procurement and poor shipments. Mills in south China mostly maintained their current production pace. Overall, the national EAF operating rate continued to decline, with a drop of 1.96%.
Looking ahead, the off-season characteristics of traditional construction steel demand were evident, and market confidence was insufficient. In the short term, construction steel prices may continue to consolidate at lows, and the loss-making situation for EAF mills per mt of steel will be hard to reverse. It is expected that the EAF operating rate will remain at mid-to-low levels 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.

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

50 mins ago

[Japan imposes anti-dumping duties up to 55% on hot-dip galvanized steel from China, South Korea]

Japan's trade and finance ministries announced provisional anti-dumping duties of 29.2%-55.3% on hot-dipped galvanised steel coil, sheet and strip imports from China and South Korea, following a year-long probe triggered by a petition from Nippon Steel, Kobe Steel, and Yodoko who alleged cheap imports forced price cuts; the corrosion-resistant products are used in construction materials like guardrails, houses, fences, and appliance components, with Hong Kong and Macau imports excluded, the move adds to a string of recent Japanese trade defense actions against Asian steel and materials, including prior anti-dumping duties on nickel-based stainless cold-rolled steel and graphite electrodes from China and Taiwan.

50 mins ago

15 hours ago

[SMM Hot-Rolled Arrivals] Arrivals decreased markedly WoW in this period.

15 hours ago

MMi Daily Iron Ore Report (August 4)

Today,the DCE iron ore futures showed weakness today. The most-traded DCE I2609 contract closed at 699.5 yuan/mt, down 0.43% from the previous trading session. Spot prices at Qingdao Port rose by 4–9 yuan/mt from the prior trading day. Traders offered actively, steel mills purchased mainly on a need-to basis, and overall spot trading was moderate.

15 hours ago