Persistent underperformance: A multi-factor analysis of EAF capacity utilization in China

Source: Mysteel May 29, 2025 15:30

As of this week, the national capacity utilization rate among independent electric arc furnace (EAF) steelmakers stands at 56.57%, marking a week-on-week increase of 1.49 percentage points. Despite occasional short-term rebounds, a long-term review reveals persistent underperformance, with weekly utilization rates consistently below the 60% threshold. This chronic weakness reflects not only cyclical pressures but also structural constraints that continue to hinder the sustainable growth of China's EAF sector.

As China accelerates its decarbonization push and promotes short-process steelmaking - particularly via EAFs - it is critical to identify the fundamental barriers preventing higher utilization rates. This report examines five key dimensions contributing to the sector's prolonged stagnation. Over 70% of Weeks Since 2019 Have Recorded Utilization Rates Below