SHANGHAI, Jul 29 (SMM) – Chinese electric arc furnace (EAF) steelmakers operating rates have recovered for the third consecutive week as of July 29, as inventory pressure at plants continued to ease with an improvement in shipments as the impact of wet season waned. 

As of July 28, operating rates across independent EAF steel mills in China stood at 81.27%, up 2.72 percentage points from a week ago and up 3.54 percentage points from the same period a month earlier, according to an SMM survey.

SMM expects a rebound in downstream demand to sustain the increase in EAF operating rates in the weeks ahead, on the back of bullish prospects for end-users’ procurement of steel products in August. The upside room in the operating rates, however, will be capped as prices of feedstock steel scrap remain firm and overall inventory pressure may prevent a continuous rally in steel prices. 

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