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.

【EAF Steel】Demand Remains Weak, Output Edges Down

This week, China's construction steel market fluctuated within a narrow range. Affected by the increase in year-end maintenance at steel mills, market arrivals declined slightly, inventories continued to edge lower, but downstream users mainly replenished stocks on a just-in-time basis. As of December 18, the average price of rebar in China stood at RMB 3,226/tonne, up RMB 21/tonne from last weekend.

On the raw materials side, China's scrap steel market fell first and then rebounded this week. The average procurement price of scrap steel (for EAFs) increased by RMB 3/tonne week-on-week to RMB 2,111/tonne (tax excluded). Both costs and margins of EAF steel mills rose, while seasonal shutdowns increased among EAF mills in Northwest and Northeast China. According to statistics, as of December 18, the capacity utilization rate of 135 EAF steel mills in China was 45.2%, down 0.54 percentage points from the previous week. EAF steel output stood at 296,200 tonnes per day, declining for three consecutive weeks.

As the year-end approaches, overall trading sentiment in China's steel market remains weak. Export license management has also had a certain impact on short-term steel exports, and many enterprises are adopting a wait-and-see attitude toward the introduction of new stimulus policies next year (such as subsidies for automobiles). It is expected that EAF steel mill output will continue to decline slowly in the near term.

BOF Steel Cost and EAF Steel Cost

EAF Steel Profit Changes by Region

China Scrap Steel Supply

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