Centralized Production Resumptions Conclude, Limiting Further Supply Increases from EAF Steel Mills

Published: Mar 27, 2026 18:26

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As of March 24, the operating rate of 50 electric-furnace steel mills nationwide mainly producing construction materials was 40.42%, up 1.78% WoW from the previous period; the capacity utilization rate was 41.75%, up 1.88% WoW from the previous period; and daily average production of construction materials was 93,000 mt, up 4,200 mt WoW.

During the survey period (March 10–17), some short-process steel mills still resumed production as planned this week, and the operating conditions of EAF steel mills continued to improve, with overall market supply increasing slightly. Affected by currently elevated steel scrap prices, EAF steel mills remained under cost pressure. In addition, enterprises were still relatively cautious about the subsequent market trend, and to avoid the inventory and risk pressure brought by large-scale output increases, their willingness to continue extending operating hours was weak.

Overall, the post-holiday phase of centralized production resumptions at short-process steel mills had basically ended. Constrained by profitability, enterprises lacked sufficient momentum to further raise operating loads and expand capacity, and the operating level of electric furnaces was expected to be difficult to improve significantly next week.

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.

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