Higher scrap prices impact China EAF mills’ margins

The steady increase in steel scrap prices has undermined the profits of China’s electric-arc-furnace (EAF) steelmakers, with the mini-mills’ margins on rebar falling to around Yuan 50/tonne ($7.1/t) on average over the past week, market sources commented Thursday.

“Since about the start of this month, the profits we can enjoy on producing rebar have fallen from Yuan 100/t to around Yuan 50/t, which is getting closer to break-even for most makers,” an official from an independent EAF steelmaker from South China’s Fujian province explained. To keep their