Average capacity utilisation rate % of EAFs continue to stagnate...

Average capacity utilisation rate % of EAFs continue to stagnate at multi year lows.

Profits are non existent, there has been minimal
Incentive of scrap yards to process scrap given there is no margin and supply of scrap metals are low.

Last year IO imports were significantly higher with one of the reasons being, the low availability of scrap and losses incurred by EAF. It appears that the continued poor performance of the scrap market will see blast furnace ulitisation rates continuing to increase with a lower feed of scrap.

Other recent links re the recent poor performance of scrap/eafs are at the bottom of this post.



https://m.mysteel.net/market-insigh...pply-hovers-low-as-property-development-slows


https://m.mysteel.net/news/5051555-shagang-clips-scrap-prices-7-times-in-march


https://m.mysteel.net/market-insights/5053489-weekly-china-eaf-production-growth-slows


https://www.forbes.com/sites/timtre...g-scrap-steel-tidal-wave-boosts-iron-ore/amp/


several factors were inhibiting an increase in the use of scrap steel, including:

• A tight relationship between the profitability of steel mills and scrap costs that limits the financial appeal of scrap over iron ore.
• A widespread property market downturn, which has restricted the demand for long steel products such girders and reinforcing rods.
• An undeveloped scrap collection and processing industry which has limited the availability of scrap with reduced incentives to capture and recover scrap from old buildings, infrastructure, vehicles, and machinery.