China’s electric-arc furnace (EAF) steelmakers increased weekly capacity
utilization to over 61% in the week ended April 2, the highest level since
January 2024, according to Mysteel data covering 94 independent mills. The rise
marks a break above the 60% threshold as EAF production becomes profitable
again, said Mysteel researcher Steven Yu. EAF mills, which use recycled scrap
instead of iron ore and coal, had previously lagged due to weaker margins and
higher costs versus blast furnaces. However, narrowing cost differences between
scrap and molten iron—down to about 60 yuan ($8.72) per ton—have improved
competitiveness.
