SMM Electric Furnace Operating Rate: Operating Rate Rises Again, Up 1.04% WoW

During the survey period (December 16–December 23), influenced by multiple factors such as changes in macro policy expectations and fluctuations in raw material prices, the most-traded rebar futures contract fluctuated rangebound, while spot market prices rose slightly. The average rebar price this week increased by 25 yuan/mt WoW, driving marginal improvements in production profitability for some electric furnace mills. This week, a few electric furnace mills slightly extended their operating hours. Overall, the national electric furnace operating rate this week was 40.86%, up 1.04% WoW.

In east China, the electric furnace operating rate this period was 46%, flat WoW. This week, electric furnace mills’ profitability showed no significant fluctuations, and overall production remained stable. In south China, the operating rate was 54.3%, flat WoW. Earlier spot price increases prompted electric furnace mills to raise operating hours; recent spot prices have stabilized, allowing mills to maintain profit margins, so operating rates continued at last period’s level. In central China, the operating rate was 15.5%, flat WoW. Recently, several electric furnace mills in the region have successively entered shutdowns for maintenance, with no immediate production resumption plans, keeping the regional operating rate consistently low. In south-west China, the operating rate was 37.9%, up 3.7% WoW. Driven by earlier spot price increases, enterprises saw smooth construction material shipments and improved profitability, leading some electric furnace mills in the region to voluntarily extend operating hours this week.

Overall, the earlier continuous rise in spot prices effectively boosted electric furnace mills’ profitability. At this stage, electric furnace enterprises with the capacity to increase production have largely completed adjustments, and some mills are already at full production. However, considering that some electric furnace mills still have production resumption plans next week, the overall electric furnace operating rate is expected to maintain an upward trend.