[SMM Analysis] Shrinking Profits Weigh on EF Steel Mill Operating Rates

Published: May 19, 2026 17:19

Save

As of May 19, the operating rate of 50 major construction material-producing electric furnace steel mills nationwide was 40.2%, down 1.7% WoW; capacity utilization rate was 42.3%, down 0.63% WoW; daily average production of construction materials was 94,300 mt, down 1,400 mt WoW.

During the survey period (May 13–May 19), regional performance showed slight divergence. In east China, some steel mills still maintained per-mt steel profits at high double-digit levels and slightly raised operating hours. In south China, steel mills saw per-mt profits shrink or even turn to losses, with multiple electric furnace mills reducing operating hours or halting production for maintenance, causing the nationwide electric furnace operating rate to decline 1.7% WoW.

Overall, electric furnace per-mt steel profits were significantly affected by market fluctuations. Continued price pullbacks, combined with the market being dominated by rigid-demand low-price procurement, led to involution among steel mills, with per-mt profits mostly staying at low levels and limited production enthusiasm. Meanwhile, scrap steel sourcing difficulties persisted. In the short term, most electric furnace mills are expected to maintain off-peak electricity production levels, and electric furnace operating rates may continue to decline.

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

30 mins ago

[SMM Steel] US Finalizes AD Review on Taiwan’s Corrosion-Resistant Steel Products

[SMM Steel] The US Department of Commerce finalized its antidumping administrative review on corrosion-resistant steel products from Taiwan covering July 2023-June 2024. Sheng Yu Steel and Prosperity Tieh Enterprise received final dumping margins of 0.00%, while Great Grandeul Steel Company Limited (Samoa) was assigned a weighted-average dumping margin of 0.99%. The USDOC maintained nearly all calculations from the preliminary findings, with only a minor spelling correction made to Prosperity’s corporate name.

30 mins ago

32 mins ago

[SMM Steel] Global Crude Steel Output Falls 1.9% YoY in April 2026

[SMM Steel] Global crude steel production declined 1.9% y-o-y to 153.4 million mt in April 2026, while January-April output fell 2.0% y-o-y to 613.3 million mt, according to worldsteel data. China’s April crude steel output dropped 2.8% y-o-y to 83.6 million mt, while India, South Korea, and the US recorded growth of 3.9%, 4.8%, and 9.4% respectively. EU-27 output declined 1.8% y-o-y to 11.0 million mt, while CIS production fell sharply by 13.4% y-o-y. Market participants said global steel production remains under pressure from weak demand and ongoing regional trade and geopolitical uncertainties.

32 mins ago

34 mins ago

[SMM Steel] Germany’s Steel Output Continues Recovering Despite Monthly Decline

[SMM Steel] Germany’s crude steel production increased by 9.5% y-o-y to 3.23 million mt in April 2026, although output declined 3.3% m-o-m, according to WV Stahl. BOF steel production rose 10.7% y-o-y to 2.22 million mt, while EAF output increased 7.1% y-o-y to 1.01 million mt. January-April crude steel production reached 12.49 million mt, up 9.1% y-o-y. Market participants said the data reflected a gradual recovery in German steel production, although overall demand and capacity utilization remained below sustainable levels.

34 mins ago