[SMM Analysis] Single-Plant Maintenance Ends; EAF Operating Rate Up 0.86% WoW

Published: Jun 16, 2026 17:43

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According to the SMM survey, as of June 16, the operating rate of the 50 EAF steel mills nationwide that mainly produce construction steel stood at 41.7%, up 0.86% WoW; the capacity utilization rate was 43.07%, up 0.74% WoW; and daily average construction steel production was 95,900 mt, up 1,700 mt WoW.
During the survey period (June 10–16), rainy weather increased in south China, affecting construction at end-user sites. Feedback from EAF mills and traders indicated difficulty in selling, with rising inventory pressure. Currently, most EAF mills are maintaining their existing low-to-medium production pace. In east China, a few EAF mills still had comprehensive margins of around 50 yuan/mt and slightly extended operating hours during periods of good shipments. In south-west China, a steel mill resumed EAF production as planned during this period, leading to a 0.86% WoW increase in the national EAF operating rate this week.
Looking ahead, macro data for infrastructure and real estate remain suboptimal, with the construction industry still in a phase of bottoming and stabilizing. Coupled with the high school entrance exams and the rainy season in south China, traditional off-season demand characteristics are gradually emerging. With little sign of improvement in EAF mill margins, it is expected that EAF mills may reduce operating hours in the near term, which could lead to a slight decline in the EAF operating rate.

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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