Interesting that EAFs have been slow in getting their operations...

Interesting that EAFs have been slow in getting their operations into gear post CNY. Still less than 50% have resumed as at last Friday.

Even with slow resumption of activities, scrap stocks are at their lowest point in 4 months, down 21% on week. This is sufficient to last 12.5 days of consumption. So what would this mean once 100% of EAFs resume operations. 6 days of operations?

Changes made to the scrap market from Jan 1 such as abolishing the scrap import quota haven’t helped so far.... Low scrap and surging scrap prices mean a likely higher proportion of steel production to come from IO inputs...(more blast furnace, less EAF)

WEEKLY: China steel scrap prices up, stocks down
Source：MysteelMar 02, 2021 18:15See Full-size Table Here
China’s domestic steel scrap market strengthened last week, with Mysteel’s steel scrap price index increasing by Yuan 63.9/tonne ($9.9/t) on week to Yuan 3,136.9/t on delivery and including the 13% VAT as of February 26. Propelling the price up were the firm demand from domestic steelmakers and the rather low scrap availability.
As of February 25, steel scrap stocks at the61 Chinese blast furnace and electric-arc-furnace (EAF) steel plants under Mysteel’s regular survey had plunged by 824,000 tonnes or 21.9% on week to reach a near four-month low of 2.94 million tonnes. This was sufficient to last the mills for 12.5 days of consumption at their present


UPDATE: Near 50% of domestic EAF mills resume operation
Source：MysteelMar 01, 2021 18:50See Full-size Table Here
As of February 26, less than half of China’s independent electric-arc-furnace (EAF) producers sampled in a new survey by Mysteel had resumed operations after the Chinese New Year (CNY) holiday over February 11-17. Though steel demand from users has revived and margins have improved, that the percentage is not higher is being blamed in part on the mills’ continuing struggle to source sufficient scrap.
According to the survey of 60 independent EAF mills nationwide published last Friday, 48.3% had returned to work, which was only slightly higher than the level of 46.6% still in operation in the week just prior to the CNY holiday. After the CNY break, domestic steel prices have increased significantly while steel scrap prices have been