Amid ongoing market downturn, when will electric furnaces resume production?

According to the SMM survey, as of August 27, the operating rate of electric furnace steel mills producing construction materials in 50 major regions nationwide was 15.2%, down 1.48 percentage points MoM. The manufacturing and infrastructure sectors are in the off-season, and high temperatures have restricted the production and circulation of steel scrap. Therefore, although the price of finished steel has risen, the profits of electric furnace steel mills have not significantly improved. Hence, it is expected that the operating rate of electric furnaces may increase in the next period, but the extent will be limited.