【SMM Analysis】EAF Operating Rate Up 0.84% This Period

As of September 15, the operating rate of 50 EAF steel mills mainly producing construction steel nationwide stood at 35.56%, up 0.84% period-on-period; the capacity utilization rate was 35.84%, up 1.41 percentage points PoP; and average daily construction steel output was 79,800 mt, up 3,100 mt PoP.

During the survey period (September 9–15), EAF operating rates diverged slightly across some regions. In East China, a few EAF mills are about to resume production, prompting nearby mills to slightly reduce operating hours; in South China, some EAF mills reported a periodic improvement in shipments coupled with fair scrap collection, and a few mills resumed production during this period; in Central China, as per-ton steel profitability remains above the break-even line, some mills slightly increased operating hours; and Southwest China largely maintained its current production pace. This week, the national EAF operating rate rose 0.84% PoP.

Looking ahead, with the Mid-Autumn Festival and National Day holidays approaching, traders and end users are engaging in pre-holiday restocking; combined with favorable weather in many regions, construction site work is expected to accelerate and demand may continue to improve. With mills' production enthusiasm undiminished, the EAF operating rate is expected to have further room to rise next period.