SHANGHAI, Sep 17 (SMM) — Operating rates of electric arc furnace (EAF) at Chinese steelmakers lost 0.61 percentage point on the week and 2.43 percentage points on the month to 78.24% as of September 15, showed an SMM survey. Weaker profits led to the decline in operating rates.

Although steel scrap prices declined 20-30 yuan/mt recently, steel prices also followed lower. In some regions such as southwest China, steel prices even saw larger declines than steel scrap prices. Narrowed profits drove steel mills to lower operating rates.