Steel Scrap Supply Tightness and Demand Pullback Drive Slight Decline in EAF Operating Rate This Week

Published: Sep 29, 2026 17:55 (GMT+8)

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As of September 29, the operating rate of 50 EAF steel mills mainly producing construction steel nationwide stood at 35.50%, down 1.3% WoW; capacity utilization rate was 35.80%, down 1.42% WoW from the previous period; daily average production of construction steel was 79,700 mt, down 3,200 mt WoW from the previous period.

During the survey period (September 23–September 29), EAF operating rates edged lower. Specifically, an individual EAF steel mill in east China suspended production recently due to insufficient steel scrap arrivals; some other mills proactively reduced operating hours slightly, considering that pre-holiday restocking demand was largely nearing its end; additionally, some EAF steel mills in central China saw a slight decline in production margins recently and also trimmed operating hours modestly. Looking ahead, the market will be largely closed during the holiday, making production adjustments at steel mills unlikely; after the holiday, with individual mills having production resumption plans, the operating rate is expected to edge up slightly.

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