As of December 20, MySteel surveyed 87 independent electric arc furnace steel mills across the country, with an average operating rate of 7464%, down 031 percentage points, an increase of 042 percentage points;The average capacity utilization rate was 6701%, down 014 percentage points, an increase of 3 month-on-month57 percentage points. The operating rate and capacity utilization rate both fell month-on-month from last week, but the magnitude was not large. As the temperature continues to drop, the off-season performance of finished steel demand is becoming more and more obvious, the transaction volume of finished products is bleak, the profit margins of steel mills are compressed, and the willingness to produce has weakened.
Cost survey of independent electric arc furnace construction steel mills (December 20, 2023) (unit: yuan ton).
The 40 sample data 3 steel mills did not produce, and the survey did not include the data, so the mysteel survey of independent electric arc furnace construction steel mills was 37, and the survey showed that the production cost of independent electric arc furnace steel mills increased slightly and the profit decreased. The situation is as follows:
Cost:The average cost of independent electric arc furnace construction steel mills in this mysteel survey was 3,999 yuan, an increase of 8 yuan tons week-on-week. This week, electric furnace steel mill scrap steel ** mixed up, at the beginning of the week with the SG rose 50 yuan tons, most regions of the country are also following suit, have raised scrap procurement**, Northeast, North China, Northwest region some steel mills are due to weather reasons to stop production, scrap demand declined, scrap purchase ** low;East China and Southwest China are adjusted scrap procurement according to the arrival and inventory of steel mills, and the inventory arrival is acceptable.
Profit:The average profit of independent electric arc furnace construction steel mills in this MySteel survey was 33 yuan ton, and the profit of valley power was 131 yuan ton, down 36 yuan ton week-on-week. This week, in addition to a slight increase in the northwest and southwest regions, the profit of electric arc furnace in most regions was 30-60 yuan. This week's building materials trading volume decreased month-on-month compared with last week, the market confidence in the finished steel end was sluggish, and the profit of scrap steel at the cost end declined.
On the whole, on the one hand, it is currently in the macro policy window period, and the terminal demand for finished products has not improved, and the finished products may maintain a narrow range. On the other hand, at present, the profit of electric furnace steel mills is acceptable, the winter storage plan of steel mills, the market mentality has changed, and the freight yard cannot cover the goods, coupled with the recent sharp cooling across the country, the output of scrap steel has decreased, supporting scrap steel. On the whole, the current performance of scrap steel is stronger than that of finished products, the price spread of snail scrap has narrowed, the profits of steel mills have declined, and it is expected that the profits of independent electric arc furnaces will further decrease next week, but the magnitude is not large.