But this higher output is unlikely to lower billet imports into the country, according to market sources. They expect this trade flow to persist as long as the arbitrage window stays open.
Production rates for EAFs - which largely produce long steel products - are easier to adjust than those for blast furnaces. And although the latter also produces long steel, any change in the production rates for EAFs have a significant effect on supply in the market, according to industry analysts.
EAFs account for about a third of long steel products produced in China while BFs account for the remainder.
While long steel products in China are largely produced directly by domestic steelmakers or re-rollers that buy billet from their compatriots, the emergence of lower prices for the semi-finished product from time to time
results in imports of it into the country growing.
EAF mills gradually raised their production...