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

10 hours ago

MMi Daily Iron Ore Report (March 10)

The trend of iron ore futures today first declined and then rebounded, with the market remaining stable in the afternoon. The main contract, I2605, eventually closed at 784 RMB/ton, up 0.26% from the previous trading session.

10 hours ago

11 hours ago

[SMM Steel] India emerges as net exporter of finished steel in Apr-Feb FY26

[SMM Steel] According to provisional data from the Ministry of Steel, India became a net exporter of finished steel during the first 11 months of FY 2025-26 (April–February). Total exports reached 6.02 million mt (up 36% YoY), while imports fell to 5.6 million mt (down 37% YoY). Crude steel production rose 11% to 153.61 million mt, outpacing a 7.2% growth in consumption, which totaled 147.7 million mt.

11 hours ago

[Domestic Iron Ore Commentary] Iron Ore Concentrates Prices in the Tangshan Area May Have Some Upside Potential

[Domestic Iron Ore Brief Commentary: Iron Ore Concentrates Prices in the Tangshan Area May Have Some Room to Move Higher] The Tangshan domestic ore market saw a wait-and-see stance in supply and demand, with environmental protection-related controls constraining beneficiation production; overall iron ore concentrates resources were relatively tight, and beneficiation plants holding cargo showed strong bullish sentiment. The local delivery-to-factory price, tax included, for 66 grade iron ore concentrates (dry basis) was 970-980 yuan/mt. Steel mills, recently affected by production restrictions, saw a noticeable phased decline in overall hot metal, but it is expected to gradually return to normal next week, so demand support for iron ore concentrates remains. In addition, the recent trend in iron ore futures prices

11 hours ago