With difficulty of profit hike, restart of EFs will be not in sight

According to SMM survey of 50 EF steel mills that mainly produce construction steel, their operating rates were 41.26%, up 2.92 percentage points WoW, as of May 14. Looking ahead, it will be more difficult for EF steel mills to purchase scraps, adding their production costs. In addition, elevated output and traditional lull demand will likely drag down spot construction steel prices. Overall, profits of EF steel mills may unlikely improve. Operating rates of EFs may edge down this week.