SMM Electric Furnace Operating Rate: Advancing Amidst Differentiation; Electric Furnace Mills' Operating Rate Increased Slightly This Week

Published: May 16, 2025 10:40

Source: SMM

Save

According to the SMM survey, as of May 13, the operating rate of 50 electric furnace steel mills across China, which mainly produce building materials, was 37.16%, up 0.64% MoM from the previous period; the capacity utilisation rate was 38.63%, up 1.65% MoM; the daily average production of building materials was 86,000 mt, an increase of 3,700 mt MoM.

During the survey period (May 6-13), the spot price of rebar fluctuated, with overall trading conditions remaining weak. Currently, the operating status of electric furnace steel mills varies across different regions. In the south-west region, due to electricity subsidies, market efficiency has recovered, and some electric furnace steel mills have increased their operating hours. In the south China region, affected by rainy weather and difficulties in collecting steel scrap, some electric furnace steel mills have slightly reduced their operating hours. Overall, the national electric furnace operating rate this week was 37.16%, up 0.64% WoW.

By region, in east China, the electric furnace operating rate this period was 43%, up 3.9% from the previous period. One electric furnace steel mill resumed production this week, driving up the overall regional operating rate. In south China, the electric furnace operating rate this period was 48.2%, down 1.4% from the previous period. Affected by heavy rainfall, construction site operations were hindered. Additionally, electric furnace steel mills in the region are currently suffering severe losses, with individual mills incurring losses of 70-100 yuan/mt, leading to a reduction in operating hours. In central China, the electric furnace operating rate this period was 16.6%, down 3.8% from the previous period. Maintenance work at blast furnace steel mills in Hubei led to an overflow of market share, prompting some electric furnace steel mills to increase their operating hours. However, temporary maintenance at electric furnace steel mills in Henan drove down the overall regional operating rate. In the south-west region, the electric furnace operating rate this period was 32.8%, up 1.1% from the previous period. Electricity subsidies in the region have improved the overall profitability of electric furnace steel mills. This week, two steel mills extended their operating hours, driving up the overall regional operating rate.

Overall, the operating status of electric furnace steel mills varied across regions this week, with operating rates increasing in east and south-west China and decreasing in central and south China. It is expected that two electric furnace steel mills will resume production as planned next week, so the electric furnace operating rate is expected to increase slightly next week.

Steel

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

17 hours ago

Before the holiday, the black chain is unlikely to see a trend-driven market [SMM Steel Industry Chain Weekly Report].

This week, ferrous metals were in the doldrums, with coking coal and coke staging a mid-week rise. At the beginning of the week, financial markets experienced sharp fluctuations, dragging down sentiment in the ferrous chain and leading to a pullback in futures. Mid-week, Indonesia's cut to coke production quotas drove coking coal and coke futures to lead the gains, though the impact was more pronounced on thermal coal, while coking coal's rise was largely sentiment-driven and short-lived. In the latter part of the week, finished products continued their seasonal inventory buildup, and support from the raw material side weakened, causing the entire ferrous chain to pull back. In the spot market, with the Chinese New Year holiday approaching, purchasing activity slowed down further, with end-users only making limited, as-needed purchases at low prices.

17 hours ago

MMi Daily Iron Ore Report (February 6)

Today, the DCE iron ore futures continued to hit bottom today, with the most-traded contract I2605 closing at 760.5 yuan/mt, down 1.23% from the previous trading day. Spot prices fell by 5–10 yuan/mt compared to the previous trading day.

17 hours ago

[SMM Chromium Daily Review] Inquiries and Transactions Weakened, Chromium Market Showed Mediocre Performance Before the Holiday

[SMM Chrome Daily Review: Trading and Inquiries Weakened, Chrome Market Showed Mediocre Performance Before the Holiday] February 6, 2026: Today, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 8,500-8,600 yuan/mt (50% metal content), flat MoM from the previous trading day...

17 hours ago