Electric Furnace Production Resumptions and Cuts Coexist, Profitability Becomes Key Going Forward

Published: Apr 16, 2026 11:53

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As of April 14, the operating rate of 50 major construction material-producing electric furnace steel mills nationwide was 42%, up 0.58% WoW; the capacity utilization rate was 42.8%, up 0.2% WoW; daily average production of construction materials was 95,300 mt, up 400 mt WoW.

During the survey period (April 7–April 14), operating rates of electric furnace mills nationwide showed mixed changes. One electric furnace mill in southwest China resumed production as planned, driving the overall operating rate to edge up. However, two electric furnace mills in east China and south China saw their profitability fall into loss territory due to steel scrap costs continuing to fluctuate at highs while finished product prices weakened, leading to increased pressure on production and operations, with some actively reducing operating hours.

Overall, the overall profitability of electric furnace steel mills pulled back WoW, and finished product shipments were lukewarm. If profitability continues to deteriorate going forward, more electric furnace enterprises are expected to reduce operating hours or lower production loads, and the electric furnace operating rate may see a phased pullback.

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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