Centralized Production Resumptions Conclude, Limiting Further Supply Increases from EAF Steel Mills

Published: Mar 27, 2026 18:26

Save

As of March 24, the operating rate of 50 electric-furnace steel mills nationwide mainly producing construction materials was 40.42%, up 1.78% WoW from the previous period; the capacity utilization rate was 41.75%, up 1.88% WoW from the previous period; and daily average production of construction materials was 93,000 mt, up 4,200 mt WoW.

During the survey period (March 10–17), some short-process steel mills still resumed production as planned this week, and the operating conditions of EAF steel mills continued to improve, with overall market supply increasing slightly. Affected by currently elevated steel scrap prices, EAF steel mills remained under cost pressure. In addition, enterprises were still relatively cautious about the subsequent market trend, and to avoid the inventory and risk pressure brought by large-scale output increases, their willingness to continue extending operating hours was weak.

Overall, the post-holiday phase of centralized production resumptions at short-process steel mills had basically ended. Constrained by profitability, enterprises lacked sufficient momentum to further raise operating loads and expand capacity, and the operating level of electric furnaces was expected to be difficult to improve significantly next week.

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

Jun 19, 2026 13:58

[SMM Iron & Steel] Raipur Billet Prices Edge Higher

Raipur billet prices rose by around 2 USD/tonne day-on-day to about 453 USD/tonne EXW. The increase was supported by previous bookings, moderate buying interest, and firmer sentiment in neighbouring markets. However, spot procurement remained cautious as buyers assessed whether the recovery could continue. Near-term billet momentum will depend on finished steel demand and follow-up transactions.

Jun 19, 2026 13:58

Jun 18, 2026 18:16

6.18 SMM Global Steel Daily Report

SMM News Flash: [Steel Billet] Export billet offers fell by 3-4USD/tonne today to around $470/mt. Inquiries from outside China decreased, orders declined, and the actual negotiation margin for transactions was around 5USD/tonne. Market intelligence indicated that Iran recently took orders for billets, offering significant price advantages, which diverted some Middle Eastern orders to Iran. Additionally, billet export prices from some neighboring countries were lower than those in China, so overseas buyers remained cautious in the short term, which would limit export transactions. [Rebar] Rebar export FOB offers edged down by 2USD/tonne today, tracking futures. According to traders, market sentiment was subdued and inquiries were mediocre. Offers for southern China resources were maintained at 520-525USD/tonne, which were relatively high. [HRC] HRC export prices fell by 1-2USD/tonne day-on-day today, with transaction prices at 494-503USD/tonne. Based on current inquiries, market offers remained mostly above 500USD/tonne, with shipment periods from July to August. Some overseas buyers made inquiries, but their target prices were more than 5USD/tonne below offers.

Jun 18, 2026 18:16

Jun 18, 2026 17:49

MMi Daily Iron Ore Report (June 18)

The iron ore benchmark contract I2609 traded on a weak note today, finally closing at 747 yuan/ton, down 1.13%. Port spot prices remained broadly unchanged from yesterday.

Jun 18, 2026 17:49