Hot weather may lead to production cuts & suspension in China
As of July 5, the average operating rate of 87 China’s independent electric arc furnace (EAF) steel mills was 67.29%, decreasing by 0.31% week on week but increasing by 5.07% month on month. The capacity utilization was 51.04%, a week-on-week decrease of 0.28% and a month-on-month growth of 5.25%.
Last week, a few parts of China’s EAF steel mills’ profits slightly rebounded, and they started to gradually increase their production, but most steel mills still faced a deficit.
Entering July, many of China’s regions were under summer electricity peak demand, plus high scrap prices and the hot weather, so EAF mills might cut or even suspend their production.
