Losses bite China's EAF mills again as steel prices decline

The fast decline in finished steel prices against comparatively firm steel scrap prices recently is hurting the profitability of Chinese independent electric-arc-furnace (EAF) steel producers, and some mills begin to suffer losses again after having enjoyed profit margins for over three months, according to Mysteel's latest survey.

"The recent constant rains in many regions of China had disrupted outdoor construction activities, leading to a shrinking steel demand among end-users. This has also weighed on the domestic steel prices," a Shanghai-based market watcher commented. Nevertheless, the heavy rains also had an influence on the outdoor scrap recycling and