Steel Scrap Consumption by EAF Mills Drop after Growing in Mar

SHANGHAI, Apr 12 (SMM) - SMM research showed that the average operating rate across 34 independent EAF mills in China stood at 59.5% as of March 28, up 11.2 percentage points from the end of February. The daily consumption of steel scrap across 34 independent EAF mills surveyed by SMM stood at 69,200 mt in March, up 213.5% MoM. Chinese EAF mills gradually resumed production after the CNY, and they gained profits in stages amid the rising steel prices. However, the output climbed slowly due to the low scrap supply in the early stage. Since the end of March, the supply of steel scrap has increased, thus the operating rates of EAF mills have grown apace. In late March, steel prices fell rapidly, and EAF mills in south and south-west China suffered losses. Some mills even reduced production, resulting in a drop in daily scrap consumption. In April, steel prices may continue to fall, and the EAF mills are expected to bear losses. SMM presumes that the average operating rate of EAF mills will move between 45%-60%.