Graphite electrodes are the essential consumables in EAF steelmaking. Due to their outstanding electrical conductivity and excellent high-temperature resistance, they play a critical role in ensuring efficient and stable furnace operation, thereby improving steel production capacity and product quality.

【Electric Arc Furnace Steel】Survey and Statistics on Independent Electric Arc Furnace Production in China

As of October 31, 2025, production data from 90 independent electric arc furnace (EAF) steel plants in China are summarized as follows:

1. Capacity Utilization

The average capacity utilization rate of the 90 independent EAF steel plants was 52.99%, up 0.7 percentage points month-on-month but down 1.36 percentage points year-on-year. Among the regions, North China, South China, and Central China saw slight increases, East China and Southwest China experienced marginal declines, while other regions remained stable.

2. Operating Rate

The average operating rate of the 90 independent EAF steel plants was 68.83%, up 0.97 percentage points month-on-month but down 2.7 percentage points year-on-year. The North China and South China regions reported small increases, while East China and Central China saw slight decreases, and the rest remained unchanged.

3. Profitability

Among the 90 independent EAF steel plants surveyed:

 19.01% reported slight profits,

 47.93% broke even (including some plants that maintained breakeven status due to production halts),

 33.06% reported losses.

4. Production and Maintenance Overview

This week, both the operating rate and capacity utilization rate of independent EAF steel plants in China increased slightly.
During the survey period:

Two EAFs underwent maintenance, and one EAF resumed production.

Details:

 In East China (Fujian), one steel plant began maintenance on October 27, involving a 105-ton EAF, impacting daily production by approximately 0.015 million tons.

 In Central China (Henan), one steel plant suspended production on October 28 due to ongoing losses and environmental restrictions, involving an 80-ton EAF, impacting daily output by 0.01 million tons.

 In East China (Jiangsu), one steel plant resumed production on October 27, involving a 220-ton EAF, increasing daily output by 0.026 million tons.

5. Market and Profit Conditions

Amid the U.S. Federal Reserve's interest rate cut and the meeting between Chinese and U.S. leaders, overall market sentiment improved. The ferrous futures market strengthened across most varieties this week, and spot prices generally rose. The rebar–scrap and plate–scrap spreads both widened to some extent, leading to a narrow profit recovery for EAF steelmakers.

According to the survey, the proportion of slightly profitable EAF plants increased by 1.65% week-on-week, while the proportion of loss-making plants decreased by 4.13%. Meanwhile, some plants continued maintenance due to environmental policies, and seasonal demand growth remained weak, with end-users maintaining an on-demand procurement pattern.

6. Outlook for Next Week

In Southwest China (Sichuan), one steel plant plans to suspend production from November 4 to November 12, involving a 100-ton EAF, impacting daily output by about 0.02 million tons.

Overall, it is expected that the operating rate and capacity utilization rate of independent EAF steel plants will continue to increase slightly next week.

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