[SMM Analysis] Electric Furnace Operating Rate Down 1.96% This Period

Published: Aug 18, 2026 17:56

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As of August 18, the operating rate of 50 EAF steel mills nationwide mainly producing construction steel was 31.71%, down 1.96% WoW; the capacity utilization rate was 31.30%, down 2.17% WoW from the previous period; the daily average production of construction steel was 69,700 mt, down 4,800 mt WoW from the previous period.
During the survey period (August 12-August 18), steel mill operations varied slightly across regions. Specifically, some EAF steel mills in east China experienced intermittent production suspensions due to navigation closures, while individual EAF steel mills fully suspended production due to prolonged losses; in south-west China, affected by the traditional off-season for construction steel demand, steel mills had sluggish shipments and relatively high inventory pressure, and multiple steel mills reduced operating hours or shut down; by contrast, most EAF steel mills in central and south China maintained their existing production pace. Overall, the national electric furnace operating rate shifted from growth to decline, with a decrease of 1.96%.
Going forward, currently, the comprehensive profit per mt of electric-furnace steel is mostly below the break-even line; meanwhile, high temperatures and rainy weather, coupled with tight bills, have kept steel scrap resources tight, and EAF steel mills are constrained by steel scrap procurement costs, making it difficult to boost overall producers' enthusiasm. The electric furnace operating rate is expected to remain at a medium-to-low level 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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