[SMM Analysis] EAF Operating Rate Edged Down 0.26% WoW This Period

Published: May 26, 2026 17:17

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As of May 26, the operating rate of 50 major construction steel EAF steel mills nationwide was 39.9%, down 0.26% WoW; the capacity utilization rate was 41.97%, down 0.36% WoW; daily average production of construction steel was 93,500 mt, down 800 mt WoW.

During the survey period (May 20–May 26), regional performance showed slight divergence. In east China, steel mills producing multiple product varieties raised EAF operating hours and increased variety steel production due to favorable margins on variety products. In south China, a coal mine accident triggered a sudden market rally, during which trading sentiment improved and EAF steel mills slightly raised operating hours. In south-west China, individual steel mills shut down for EAF technological transformation and upgrades, causing the nationwide EAF operating rate to edge down 0.26% WoW this week.

Overall, per-mt steel margins at EAF steel mills were subject to significant fluctuations driven by market conditions. Going forward, the construction steel market will enter the traditional June off-season for demand, and with prices under pressure to rise, most steel mills are expected to maintain mid-to-low operating rates. However, considering that some EAF steel mills plan to resume production around month-end in May, the EAF operating rate may edge up next week.

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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