Poor Profits Dampen Electric Furnace Mills' Production Enthusiasm

Published: Apr 21, 2026 17:29

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As of April 21, the operating rate of 50 major construction steel-producing electric furnace steel mills nationwide was 41.4%, down 0.6% WoW; the capacity utilization rate was 42.5%, down 0.3% WoW; daily average production of construction steel was 94,700 mt, down 700 mt WoW.

During the survey period (April 14–April 21), four electric furnace mills in east China and southwest China shortened their operating hours, leading to a 0.6% WoW decline in the nationwide electric furnace mill operating rate. Although construction steel prices edged up this week, steel scrap prices rose more than finished steel prices, causing profitability at electric furnace mills to decline. More enterprises voluntarily shortened production hours.

Overall, some electric furnace mills are currently facing weak shipments and profitability under pressure. Enterprise production enthusiasm has weakened. Next week, some electric furnace mills still plan to reduce operating hours, and therefore the electric furnace operating rate will continue to decline going forward.

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.

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