Sharp slowdown of China’s electric-arc furnace output at the start of 2026

China’s Electric-Arc Furnace (EAF) steel output fell -24.4% YoY to 11.0Mt in Feb’26, underperforming the broader market as weak margins and soft demand persisted.

Chart showing China electric-arc furnace output slowdown in early 2026 with monthly production trends, YoY decline and comparison with previous years

Year-to-date, EAF production reached 27.2Mt in Jan–Feb’26 (-9.9% YoY), lagging Blast Furnace output at 138Mt (-2.2% YoY) and crude steel at 160Mt (-3.6% YoY).

The sharp February drop is partly technical. Lunar New Year shifted to Feb’26 (vs Jan’25), distorting YoY comparisons. But the divergence is real. EAF remains more margin-sensitive and quicker to cut. At the same time, rising iron ore inventories and imports signal weak steel consumption. Without a demand recovery, EAF utilisation is likely to stay under pressure.

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