Rising Production Cuts and Maintenance, Electric Furnace Operating Rate Down 1.2% WoW

Published: Apr 29, 2026 14:41

Save

As of April 28, the operating rate of 50 major construction steel electric furnace steel mills nationwide was 40.2%, down 1.2% WoW; capacity utilization rate was 41.7%, down 0.84% WoW; daily average construction steel production was 92,800 mt, down 1,900 mt WoW.

During the survey period (April 21–April 28), two electric furnace mills in South China and Central China slightly reduced operating hours, while another Central China electric furnace mill implemented production shutdown and maintenance due to poor production profitability, causing the nationwide electric furnace operating rate to drop 1.2% WoW.

Overall, electric furnace mill profitability has diverged at this stage. Some electric furnace mills were dragged down by high raw material and electricity costs, with production profitability under pressure. These mills have proactively reduced operating hours, driving construction steel supply to pull back WoW. Some electric furnace mills still plan to reduce operating hours next week, so electric furnace operating rates are expected to continue declining.

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 to learn 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

13 mins ago

MMi Daily Iron Ore Report (April 29)

Today, the DCE iron ore futures trended stronger, with the most-traded contract I2609 closing at 787.5 yuan/mt, up 0.90% from the previous trading session. Spot prices rose 6-7 from the previous day. Traders showed moderate enthusiasm in quoting, while steel mills maintained a strong wait-and-see attitude with fewer inquiries; overall spot transactions were thin.

13 mins ago

37 mins ago

[SMM HRC Daily Trading] Spot Trading Volume Increased

[SMM HRC Daily Trading] On April 29, the combined daily HRC trading volume of SMM's sample enterprises across four cities (Shanghai, Lecong, Tianjin, Ningbo) was 15,930 mt, up 480 mt DoD (+3.1%), up 40.35% YoY (solar calendar), and up 5.57% YoY (lunar calendar).

37 mins ago

45 mins ago

[SMM Sheets & Plates Daily Review] Sheets & Plates Prices to Hover at Highs in the Short Term

The most-traded hot-rolled coil (HRC) contract fluctuated upward today, closing at 3,407, up 0.8% MoM. HRC spot prices followed suit, rising 10-30 yuan/mt. In terms of supply, the impact from maintenance on hot rolling this week was 199,500 mt, up 10,000 mt WoW; next week's impact from maintenance on hot rolling will be 18.85 mt, down 11,000 mt WoW, with short-term supply staying high. Demand side, as futures rose, some end-users began pre-holiday restocking at low prices, and willingness to purchase at low prices for basis trading and speculation also strengthened. Cost side, Brent crude oil continued to rise, and cost support remained. Looking ahead, sheets & plates were in a pattern of strong supply-demand dynamics in the short term, bullish sentiment existed outside China, and the..

45 mins ago