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. Howev

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.