[SMM Analysis] EAF Operating Rate Edges Up This Cycle

Published: Jul 23, 2026 11:39

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As of July 21, the operating rate among 50 EAF steel mills mainly producing construction steel nationwide was 36.62%, up 0.04 percentage point WoW; the capacity utilization rate was 36.50%, down 0.06 percentage point WoW; daily average production of construction steel stood at 81,300 mt, down 100 mt WoW.
During the survey cycle (July 15–July 21), mill operating status diverged significantly across regions – only east China saw a slight rebound in operations, while all other regions registered declines. Specifically, in east China, inventory pressure from earlier typhoon impacts gradually eased, and operating hours returned to normal at some EAF mills; additionally, in certain areas, blast furnace mills controlled output, tightening regional supply and prompting EAF mills to lift operating rates modestly. In central China, steel mills faced widening losses, prompting EAF mills to continue production cuts. In southwest China, constrained by scrap raw material shortages, some EAF mills opted to slightly reduce operating hours. South China largely maintained its normal production pace.
Looking ahead, rebar demand remains in the off-season with weak intrinsic drivers, and the fundamental structure is unlikely to change significantly. Inventory buildup expectations persist at steel mills. As a result, overall EAF operating rates are expected to stay in the medium-to-low range in the near term, with limited room for a major increase.

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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