SMM Electric Furnace Operating Rate: Two electric furnace plants resumed production as scheduled, with the national operating rate rising to 38.46%

Published: May 21, 2025 13:13

Source: SMM

Save

According to the SMM survey, as of May 20, the operating rate of 50 electric furnace steel mills across the country, which mainly produce building materials, was 38.46%, up 1.3% MoM from the previous period; the capacity utilisation rate was 39.72%, up 1.08% MoM; the daily average production of building materials was 88,400 mt, an increase of 2,400 mt MoM.

During the survey period (May 13 - May 20), the spot price of rebar first rose and then fell, with overall trading conditions being average. Currently, the operating status of electric furnace plants varies across different regions. In South China, due to rainy weather and poor sales of finished steel products, one electric furnace plant conducted furnace maintenance. In Central and Southwest China, two electric furnace plants resumed production as planned, driving up the overall operating rate of electric furnaces. Overall, the national electric furnace operating rate this week was 38.46%, up 1.3% WoW.

By region, in East China, the electric furnace operating rate this period was 43%, unchanged from the previous period. Affected by the decline in finished steel prices, the profits of electric furnace plants in the region have decreased, and currently, the benefits of most steel mills have reached the break-even point. In South China, the electric furnace operating rate this period was 46.3%, down 1.9% from the previous period. With the increase in hot and rainy weather, downstream construction has been hindered. Coupled with the poor profits of electric furnace plants in the region currently, one electric furnace plant has a three-month furnace maintenance plan scheduled for this week. In Central China, the electric furnace operating rate this period was 21.9%, up 5.3% from the previous period. This week, one electric furnace plant completed temporary maintenance and resumed production as planned, driving up the overall regional operating rate. In Southwest China, the electric furnace operating rate this period was 36.1%, up 3.3% from the previous period. With electricity subsidies in the Chengdu and Chongqing regions, the overall profit levels of electric furnace plants are moderate. Additionally, with one electric furnace plant in the region resuming production this week, the overall regional operating rate has increased.

Overall, with the arrival of hot and rainy weather in China, traditional demand has slightly contracted. However, against the backdrop of a significant contraction in the proportion of real estate demand, the resilience of steel demand remains. It is expected that there will still be electric furnace plants with production resumption plans next week, and the overall electric furnace operating rate may still see a slight increase.

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

Feb 6, 2026 18:30

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.

Feb 6, 2026 18:30

Feb 6, 2026 18:09

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.

Feb 6, 2026 18:09

Feb 6, 2026 17:41

[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...

Feb 6, 2026 17:41