Electric Furnace Production Resumptions and Cuts Coexist, Profitability Becomes Key Going Forward

Published: Apr 16, 2026 11:53

Save

As of April 14, the operating rate of 50 major construction material-producing electric furnace steel mills nationwide was 42%, up 0.58% WoW; the capacity utilization rate was 42.8%, up 0.2% WoW; daily average production of construction materials was 95,300 mt, up 400 mt WoW.

During the survey period (April 7–April 14), operating rates of electric furnace mills nationwide showed mixed changes. One electric furnace mill in southwest China resumed production as planned, driving the overall operating rate to edge up. However, two electric furnace mills in east China and south China saw their profitability fall into loss territory due to steel scrap costs continuing to fluctuate at highs while finished product prices weakened, leading to increased pressure on production and operations, with some actively reducing operating hours.

Overall, the overall profitability of electric furnace steel mills pulled back WoW, and finished product shipments were lukewarm. If profitability continues to deteriorate going forward, more electric furnace enterprises are expected to reduce operating hours or lower production loads, and the electric furnace operating rate may see a phased pullback.

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

6 hours ago

5.20 SMM Global Steel Daily Report

China Steel billet export prices continued to decline today, falling by about 3-4 USD/tonne, with 3SP 150*150mm FOB quotes at 472-475 USD/tonne. It was learned that as export billet prices continued to fall, wait-and-see sentiment was strong in the market. Meanwhile, some steel billet export mills had maintenance plans and were cautious in taking orders to ensure supply for the Chinese market.

6 hours ago

[SMM Sheets & Plates Daily Review] Futures First Declined Then Rebounded, Short-term Trend Unchanged

Today, the most-traded hot-rolled coil (HRC) contract first declined then rebounded, closing at 3,428 at the end of the session, down 0.03% intraday. HRC spot prices mostly fell 10-20 yuan/mt today, with some markets remaining stable. In terms of supply, the impact from maintenance on hot-rolled production this week was 137,500 mt, down 98,500 mt WoW. Next week, the impact from maintenance on hot-rolled production will be 185,500 mt, up 48,000 mt WoW, with overall pressure being neutral. Demand side, end-users still mainly purchased at low prices, and futures-spot arbitrage continued to ship at low prices. Cost side, after macro front disturbances diminished, short-term cost support weakened somewhat. Looking ahead, the supply-demand imbalance in HRC fundamentals showed some diverg

6 hours ago

MMi Daily Iron Ore Report (May 20)

Iron ore futures saw intense trading today, with the most-traded contract I2609 closing at 800 yuan/mt, up 0.19% from the previous trading session. Port spot prices were basically flat compared to the previous day. Traders showed moderate quoting activity; steel mills restocked on an as-needed basis with few inquiries; overall spot market transactions were limited.

6 hours ago