[SMM Analysis] Select EAF Steel Mills Resume Production, Operating Rate Up 1.32% WoW

Published: May 12, 2026 16:42

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As of May 12, the operating rate of 50 major construction steel EAF steel mills nationwide was 41.9%, up 1.32% WoW; capacity utilization rate was 43.0%, up 0.99% WoW; daily average construction steel production was 95,700 mt, up 2,200 mt WoW.

During the survey period (May 6–May 12), select EAF steel mills in central China resumed production. Additionally, some steel mills in east China saw improved per-mt steel profitability and slightly raised operating hours, leading to a WoW increase in the nationwide EAF steel mill operating rate.

Overall, steel mills currently applied relatively high surcharges for specific product sizes, and the comprehensive per-mt profitability of EAF steel mills improved slightly. Some EAF steel mills resumed production or raised operating hours, but difficulties in scrap procurement persisted, leaving relatively small room for further increases in operating hours. Currently, steel mills in the spot market showed strong sentiment to hold prices firm. Considering production profitability, the likelihood of proactively reducing operating hours was relatively small. Therefore, the short-term change in EAF operating rates is expected to be relatively small.

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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