SHANGHAI, Oct 26 (SMM) – The operating rates across 34 EAF mills of construction steel in China stood at 58.52% as of October 26, up 3 percentage points on the week.
The power rationing situation stabilised this week and loosened in south China. Steel mills mostly reached full capacity. Some mills suggested that local steel scrap prices stood firm amid tight supply, thus, they have not yet reached full capacity for the sake of cost control. The operating rates in east China fluctuated greatly amid policy changes of power rationing and the average operating rates rose 4% to 41% on the week. Individual mills in Henan returned to full capacity, driving the operating rates increase to 62%. The operating rates in southwest China remained at 56% amid stable policies of power rationing this week.
The average prices of rebar stood at 5,749.5 yuan/mt as of today, down 350.6 yuan/mt from October 19.
Rebar prices declined sharply while steel scrap prices stood firm this week. The profit of the mainstream EAF mills producing rebar in east China recorded 538 yuan/mt, down 217 yuan/mt from October 19.
