Fubao Scrap Steel: Spring Festival Production Halt Wave Approaching, 104 Electric Arc Furnace Plants Reduce Production by 36.2% This Week

Fubao Information’s survey of 104 electric furnace plants nationwide shows a capacity utilization rate of 25.6% (a decrease of 9.8 percentage points month-on-month). The daily scrap steel consumption is 147,700 tons, down 83,700 tons from last week, a decline of 36.2%, and a year-on-year increase of 37% during the lunar calendar period. Currently, among the 104 electric furnace plants, 52 are in operation (-26), and 52 are shut down (+26 compared to last week, -10 year-on-year during the lunar calendar period). The significant decrease in daily electric furnace consumption this week is mainly due to the gradual peak of electric furnace steel plant shutdowns for the Spring Festival holiday in various regions, except for Hebei and other areas. It is expected that the number of electric furnace shutdowns will increase significantly next week.