SMM Survey: Improved Profitability Drives 10 EAF Steel Mills to Extend Production Hours This Week

Published: Dec 2, 2025 17:13

Source: SMM

Save

As of December 2, the operating rate for 50 EAF steel mills primarily producing construction materials nationwide was 39.1%, up 0.74% WoW; the capacity utilization rate was 41.06%, up 1.17% WoW; the daily average production of construction materials was 92,700 mt, an increase of 2,600 mt WoW.

During the survey period (November 26 - December 2), the macro sentiment improved, and rising futures pushed spot market prices up continuously. This week, the average rebar price rose 40 yuan/mt WoW, leading to a significant improvement in EAF mill profitability. Ten EAF mills expanded capacity release by extending operating hours this week, resulting in a steady increase in overall production activity for short-process steel mills. Overall, the national EAF operating rate this week was 39.1%, up 0.74% WoW.

East China: The regional EAF operating rate was 46.7%, up 0.6% WoW. Benefiting from the continuous widening of the rebar-scrap spread, EAF mill profits approached nearly 100 yuan, boosting production enthusiasm. Two EAF mills in the region increased operating hours this week.
South China: The regional EAF operating rate was 50.7%, up 4.0% WoW. Sunny weather and suitable temperatures this week created favorable conditions for construction site activity. Coupled with rapid rises in regional finished steel prices, EAF mill profitability improved significantly. Driven by these dual positives, five EAF mills in the region extended operating hours this week.
Central China: The regional EAF operating rate was 15.5%, down 5.3% WoW. Overall EAF mill operations remained stable this week, but one mill suspended production for its annual equipment maintenance plan, causing the regional operating rate to decline.
South-west China: The regional EAF operating rate was 34%, up 1.5% WoW. Currently, inflows of external resources have decreased, and regional temporary shortages persist. Four EAF mills in the region extended operating hours this week, leading to a significant rise in the regional operating rate.

Overall, the ongoing rise in finished steel market prices has directly driven significant improvements in EAF mill profitability. Meanwhile, in some regions, production cuts at blast furnace enterprises mean temporary market supply shortages remain unresolved. Driven by the persistent supply-demand gap and recovering corporate profits, multiple EAF mills increased operating hours this week. Combined with clear production increase plans already announced by some EAF mills for next week, the national EAF steel operating rate is expected to show a steady upward trend 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

12 hours ago

[SMM Steel] SMS Group wins SAIL Durgapur billet caster modernization project

[SMM Steel] Germany’s SMS Group secured a contract from India’s SAIL to modernize billet casters at the Durgapur Steel Plant. The upgrade of two six-strand casters is expected to boost production capacity by over 60% and introduce a 150 mm × 150 mm billet section to support downstream rebar and wire rod production. The project will be implemented in two phases, with commissioning planned for Q4 2027 and Q3 2028.

12 hours ago

[SMM Steel] US drawn wire exports rise 12.5% MoM in January 2026

[SMM Steel] US drawn wire exports totaled 6,737 mt in January 2026, up 12.5% MoM but down 15% YoY, according to the US Department of Commerce. Canada remained the top destination with 2,831 mt, followed by Mexico at 2,702 mt, while export value reached $18.1 million.

12 hours ago

13 hours ago

[SMM Steel] Eurofer urges EU to act fast as global steel overcapacity hits record 2.4 billion mt

[SMM Steel] On March 25, 2026, the European Steel Association (Eurofer) issued a stark warning following the release of the latest OECD data, labeling global steel overcapacity an "existential threat" to European steelmaking, investment, and jobs. The data reveals that global steelmaking capacity has climbed to a record 2.4 billion mt, with excess capacity reaching 640 million mt in 2025—exceeding total OECD production by over 200 million mt. Eurofer Director-General Axel Eggert is calling for the immediate adoption of a robust tariff-rate quota (TRQ) system to shield the EU market from trade diversion and stabilize the domestic industry before current measures expire

13 hours ago