SHANGHAI, Jul 23 (SMM) – Chinese electric arc furnace (EAF) steelmakers operating rates have inched up as of July 22 as shipments improved and stock pressure at steel mills eased after the wet season ended in some regions, like South China.

The main increment, rather than driving by a rise in profits, still came from the return of full production at some steelmakers, who previously stopped production for maintenance due to equipment problems. It was not common for factories to see reduced stocks and higher profits. Before the spot prices of steel show an upward trend, the space for continuous and substantial recovery of EAF operating rate will be limited.

As of July 22, operating rates across independent EAF steel mills in China stood at 78.55%, up 4.55 percentage points from a week ago but down 3.4 percentage points from the same period a month earlier, according to an SMM survey.

Weekly operating rates across EAF steel mills in China (Source: SMM)