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Falling steel prices squeeze China EAF mills' margins

ABSTRACT

Mysteel's latest survey among 40 independent electric-arc-furnace (EAF) steel mills nationwide showed that as of May 13, they were losing around Yuan 35 ($5.2) on every tonne of rebar they sold while over the previous survey period, these mills could still enjoy a margin albeit a tiny Yuan 15/t. Market watchers blamed the steady fall in domestic steel prices over the past few weeks for the mini-mills' thinning margins.
The COVID-related restrictions on goods transportation and manufacturing operations, plus the heavy rainfalls in southern areas of China, have impacted steel demand and weakened steel market sentiment, undermining domestic steel prices too, a Shanghai-based market watcher explained. And even though their production costs have declined somewhat, the steelmakers, especially EAF

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