EAF steelmakers cut production on tighter scrap supply

SHANGHAI, Oct 14 (SMM) – The smaller scale Chinese electric arc furnace (EAF) steelmakers slashed production in early October, as raw material scrap supply tightened after blast furnace steel mills recovered from anti-smog production curbs.

As of October 11, operating rates across EAF steelmakers stood at 57%, down 2 percentage points from the mid September, according to the latest SMM survey.

Higher steel scrap costs deepened losses across EAF mills, with tax-included prices of steel scrap in Changzhou rising 80 yuan/mt to 2,560 yuan/mt from levels seen before the National Day holiday.

EAF steelmakers saw a loss of 226 yuan/mt as of October 11, with tax-included costs standing at 3,906 yuan/mt. The loss stood at just about 50 yuan/mt as of the end of September.