Profitability improved, with 9 electric furnace mills extending operating hours this week.

During the survey period (November 19–25), spot prices first fell then rose, with the cumulative increase significantly exceeding the decline. The average spot price increased by 21 yuan/mt WoW. Benefiting from the rebound in finished steel prices and easing cost-side pressure, electric furnace mills' profit margins continued to improve. This week, multiple mills extended production hours, and overall production enthusiasm steadily increased. Overall, the national electric furnace operating rate this week was 38.36%, up 1.44% WoW.

In east China, the electric furnace operating rate this period was 46.1%, up 2.3% WoW. With improved market sales and sustained profitability of electric furnace steel enterprises, four electric furnace mills in the region increased operating hours this week. In south China, the electric furnace operating rate this period was 46.7%, up 0.7% WoW. The region experienced mainly cloudy weather with comfortable temperatures, creating favorable conditions for downstream construction. Additionally, certain specifications were in short supply, boosting end-user purchasing enthusiasm. One electric furnace mill in the region extended operating hours this week. In central China, the electric furnace operating rate this period was 20.8%, up 1% WoW. Short-term supply shortages persist in the region, coupled with improved profitability at electric furnace mills. Some mills have extended operating hours for two consecutive weeks to ensure stable market supply. In south-west China, the electric furnace operating rate this period was 32.5%, up 1.3% WoW. Driven by the expanding scrap-steel price spread, profitability approached 100 yuan per ton, boosting production enthusiasm. Four electric furnace mills in the region extended operating hours this week, significantly raising the regional operating rate.

Overall, spot prices rose rapidly this week, significantly improving the profitability of electric furnace steel enterprises. Industry production enthusiasm gradually increased as profits recovered. However, with some electric furnace mills scheduled for annual maintenance next week, the national electric furnace operating rate is expected to decline. Subsequent focus should remain on changes in the scrap-steel price spread and the progress of mill maintenance.