Average Operating Rate of EAF Mills Hits a New High in Half a Year amid Steady Increase in Steel Prices in Feb

SHANGHAI, Mar 14 (SMM) - SMM research showed that the average operating rate across 34 independent EAF mills in China stood at 48.18% as of February 28, up 48.18 percentage points from the end of January. The daily consumption of steel scrap across 34 independent EAF mills surveyed by SMM was 32,500 mt in February, up 235% 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 problem of scrap supply in the early stage. Since the end of February, the supply of steel scrap has increased, thus the operating rates of EAF mills have grown apace. In March, the downstream demand will boom. SMM presumes that the average operating rate will remain high at 50%-70% on limited scrap supply and profit margins.