- EAF utilisation reaches highest level since early 2024
- Narrowing losses drive increased seasonal output recovery
Mysteel Global: Steel production among Chinese electric-arc-furnace (EAF) steelmakers continued rising during the past week as more makers resumed operations in response to the seasonal recovery in steel demand, according to Mysteel’s latest survey.
During March 27-April 2, the average capacity utilization rate among the 94 independent EAF steelmakers under Mysteel’s tracking rose for the fifth straight week by another 2.4 percentage points on week to reach 61.2%, the highest since January 2024, the latest survey data show.
Their average operational rate also increased 4.3 percentage points on week to touch a five-month high of 73.1%, according to the survey findings.
The output growth was mainly observed in Northwest, Southwest, and East China, where a total of six mini-mills had completed maintenance work and restarted production in the past week, according to Mysteel’s survey.
This led to an increase of some 8,800 tonnes/day on average in daily steel production among the sampled steelmakers.
Meanwhile, more EAF mills increased their working hours in the hope of capitalizing on a firm recovery in steel demand as the market enters the traditional peak season for consumption in spring, Mysteel Global learned.
Though the domestic mini-mills were still struggling with negative margins, their losses had thinned as steel scrap prices had dropped at a faster rate than finished steel prices, the survey results indicated.
On April 2, for example, Mysteel assessed China’s composite steel scrap price at Yuan 2,477/tonne ($359.7/t), lower by Yuan 11/t from a week earlier, while the country’s national spot price for HRB400E 20mm diameter rebar had dipped Yuan 4/t on week to Yuan 3,329/t, both including the 13% VAT.
By the same day, the average loss on rebar sales incurred by the 76 independent EAF mills nationwide under Mysteel’s tracking was Yuan 80/t, slightly smaller than the Yuan 89/t loss they had suffered a week earlier.
Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint
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