Operating Rate Held Steady; Electric Furnace Mills May Face Phased Production Pressure Ahead

Published: Apr 7, 2026 17:40

Save

As of April 7, the operating rate of 50 major construction material-producing electric furnace steel mills nationwide was 41.42%, flat WoW; the capacity utilization rate was 42.6%, flat WoW; daily average production of construction materials was 94,900 mt, flat WoW.

During the survey period (March 31–April 7), the overall operating rate of electric furnace mills nationwide remained stable, with fluctuations being relatively small. Currently, profitability of construction material products among electric furnace enterprises showed some divergence. Some enterprises have already fallen into losses due to high raw material costs and declining finished product prices, while others maintained a certain profit margin through strategies of adjusting product specifications and price premiums.

Production and operations side, some electric furnace mills are already facing weak shipments and profitability under pressure. Additionally, South China has entered the rainy season, and the rainy and overcast weather conditions will further affect downstream construction progress. If profitability continues to deteriorate going forward, electric furnace enterprises may potentially reduce their operating hours.

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

3 hours ago

Shagang Industrial Wire Rod Price Adjustment Information on April 11

[Shagang Industrial Wire Rod Price Adjustment Information on April 11] On April 11, 2026, Shagang released its mid-April pricing policy. This price adjustment was based on the "Shagang High-Quality Wire Rod Product Price Adjustment Information of April 1." High-quality wire rod prices remained stable, with 45# at 3,710 yuan/mt, 82B at 4,010 yuan/mt, 35K at 3,680 yuan/mt, and PC steel Φ8-12 at 3,680 yuan/mt. [SMM Steel]

3 hours ago

[SMM Iron & Steel] Champion Iron Completes Acquisition of Rana Gruber

Champion Iron Limited announced the successful completion of its voluntary cash tender offer for the acquisition of Rana Gruber on April 10, 2026. This acquisition provides Champion Iron with an established iron ore operation in Norway, featuring an annual production capacity of approximately 1.8 million tons of high-grade hematite concentrates. The strategic move expands Champion’s presence in the European market and diversifies its high-grade asset portfolio for green steel feedstock.

3 hours ago

Zenith Steel released its mid-April pricing policy

On April 10, 2026, Zenith Steel released its mid-April pricing policy. I. Supplementary price adjustment for the 1st ten-day period of April: 1. Wire rod 260 2. Rebar 180 II. Provisional prices for the 2nd ten-day period of April: 1. Wire rod 3,600 (↓100) 2. Rebar 3,400 III. The benchmark interest rate for bank acceptance bill monthly discounting was adjusted to 0.99‰ [SMM Steel]

3 hours ago