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

21 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.

21 hours ago

22 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.

22 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...

22 hours ago