Profitability improved, with 9 electric furnace mills extending operating hours this week.
- Nov 27, 2025, at 11:57 am
- SMM
As of November 25, the operating rate of 50 electric furnace steel mills producing building materials nationwide was 38.36%, up 1.44% WoW; the capacity utilization rate was 40.44%, up 1.47% WoW; the daily average production of building materials was 90,100 mt, up 3,300 mt WoW.
In east China, the electric furnace operating rate this period was 46.1%, up 2.3% WoW. With improved market sales and sustained profitability of electric furnace steel enterprises, four electric furnace mills in the region increased operating hours this week. In south China, the electric furnace operating rate this period was 46.7%, up 0.7% WoW. The region experienced mainly cloudy weather with comfortable temperatures, creating favorable conditions for downstream construction. Additionally, certain specifications were in short supply, boosting end-user purchasing enthusiasm. One electric furnace mill in the region extended operating hours this week. In central China, the electric furnace operating rate this period was 20.8%, up 1% WoW. Short-term supply shortages persist in the region, coupled with improved profitability at electric furnace mills. Some mills have extended operating hours for two consecutive weeks to ensure stable market supply. In south-west China, the electric furnace operating rate this period was 32.5%, up 1.3% WoW. Driven by the expanding scrap-steel price spread, profitability approached 100 yuan per ton, boosting production enthusiasm. Four electric furnace mills in the region extended operating hours this week, significantly raising the regional operating rate.
Overall, spot prices rose rapidly this week, significantly improving the profitability of electric furnace steel enterprises. Industry production enthusiasm gradually increased as profits recovered. However, with some electric furnace mills scheduled for annual maintenance next week, the national electric furnace operating rate is expected to decline. Subsequent focus should remain on changes in the scrap-steel price spread and the progress of mill maintenance.
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