Rising Production Cuts and Maintenance, Electric Furnace Operating Rate Down 1.2% WoW

Published: Apr 29, 2026 14:41

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As of April 28, the operating rate of 50 major construction steel electric furnace steel mills nationwide was 40.2%, down 1.2% WoW; capacity utilization rate was 41.7%, down 0.84% WoW; daily average construction steel production was 92,800 mt, down 1,900 mt WoW.

During the survey period (April 21–April 28), two electric furnace mills in South China and Central China slightly reduced operating hours, while another Central China electric furnace mill implemented production shutdown and maintenance due to poor production profitability, causing the nationwide electric furnace operating rate to drop 1.2% WoW.

Overall, electric furnace mill profitability has diverged at this stage. Some electric furnace mills were dragged down by high raw material and electricity costs, with production profitability under pressure. These mills have proactively reduced operating hours, driving construction steel supply to pull back WoW. Some electric furnace mills still plan to reduce operating hours next week, so electric furnace operating rates are expected to continue declining.

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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