Electric Arc Furnaces

scrap · DRI · steel

The US makes about 72% of its steel in arc furnaces. China makes about 10%, and runs its arc furnaces at half capacity for lack of scrap.

Share of steel made in electric arc furnaces in 2024: United States 71.8%, India 58.8%, Japan 26.2%, China 10.2%; world 30.3% in 2025. In the first half of 2025 China's blast furnaces ran at 88.6% utilization and its arc furnaces at 48.6%. SHARE OF STEEL MADE IN ELECTRIC ARC FURNACES, 2024 United States 71.8% India 58.8% World (2025) 30.3% Japan 26.2% China 10.2% CHINA UTILIZATION, H1 2025 Blast furnaces 88.6% Arc furnaces 48.6% China builds arc furnaces faster than it can feed them scrap
World EAF
30.3%
US
71.8%
China
10.2%
Companies tracked
17, 4 Chinese
Hub
Industry

Finding

The US already makes most of its steel with electricity; the global question is Chinese scrap

Electric arc furnaces made 30.3% of the world's 1.85 billion metric tons of steel in 2025 (worldsteel). The United States is at about 72%, built on scrap and new mills such as Steel Dynamics' 3-million-ton flat-rolled mill in Sinton, Texas. China, which makes more than half the world's steel, is at about 10%.

China has the furnaces but not the feed. Its arc furnaces ran at under half their capacity in 2025 while blast furnaces ran near 89%, because domestic scrap is still scarce and scrap imports fell. Beijing's target of 15% EAF steel by 2025 was missed; the 20% target for 2030 depends on scrap arriving as China's postwar building stock reaches end of life.

An arc furnace melts scrap or direct reduced iron (DRI) with graphite electrodes at about 1,800 °C and cuts CO2 by 70-80% against a blast furnace when the power is clean. It is also one of the largest and least steady loads on any grid: a 150-metric ton furnace swings tens of megawatts within seconds, so new mills come with dedicated substations, static VAR compensators and, increasingly, batteries. Making new steel from iron ore without coal requires hydrogen DRI ahead of the furnace.

Vendors

Furnace, electrode and power-quality suppliers

Furnace builders, the graphite electrode makers every furnace consumes, and the flicker-compensation and transformer suppliers that let a grid carry an arc furnace. Active companies first, then pilots, research groups and companies that exited.

Furnace and minimill builders
CompanyProductsHQTechnologyReference sitesStatus
CERI (MCC Group)Arc furnaces and steel plant engineeringChinaAC EAF; EPC contractoractive
CISDI (China Minmetals)Arc furnaces and full steel plant engineeringChinaAC EAF; EPC contractoractive
DanieliAC and DC arc furnaces, Digimelter, Q-One power feeder, complete minimillsItalyAC and DC EAF; Q-One power-electronic feederactive
JP Steel PlantechECOARC shaft-type arc furnaceJapanContinuous preheating shaft EAFactive
Primetals TechnologiesEAF Quantum (shaft preheating) and EAF UltimateUKShaft scrap preheating; high-power AC EAFactive: Owned by Mitsubishi Heavy Industries
SMS groupAC and DC arc furnaces, CSP and minimill linesGermanyAC and DC EAFBig River Steel, Osceola, Arkansasactive
Tenova (Techint)Consteel continuous-charging EAF, iEAF controlsItalyContinuous scrap preheating and chargingactive
Graphite electrodes
CompanyProductsHQTechnologyReference sitesStatus
Fangda CarbonGraphite electrodesChinaUHP electrodes; largest Chinese makeractive
GrafTechUltra-high-power graphite electrodes; Seadrift needle cokeUSPetroleum needle coke, vertically integratedactive
Graphite IndiaGraphite electrodesIndiaUHP electrodesactive
HEGGraphite electrodesIndiaUHP electrodesactive
Resonac (ex-Showa Denko)Graphite electrodesJapanUHP electrodesactive
Tokai COBEXGraphite electrodes and cathodesGermanyUHP electrodesactive: Tokai Carbon subsidiary
Power quality and furnace electrics
CompanyProductsHQTechnologyReference sitesStatus
ABBArcSave electromagnetic stirring, furnace drivesSwitzerlandElectromagnetic stirringactive
Hitachi EnergySVC Light STATCOM flicker compensation, furnace transformersSwitzerlandSTATCOMactive
Siemens EnergySVC and STATCOM flicker compensation, furnace transformersGermanySVC, STATCOMactive
TBEAFurnace transformersChinaEAF and SAF transformersactive

Constraints

What limits arc furnace steel

EAF constraints
ConstraintWhy it matters
Scrap supplyQuality and volume limit what EAFs can make without DRI
Graphite electrodesNeedle coke supply concentrated in a few producers, China and Japan
Grid capacityDedicated substations; flicker and harmonics control
Clean powerCO2 savings depend on the grid mix

Sources

Sources and scope

Scope
Electric Arc Furnaces for Steel
Sources
worldsteel World Steel in Figures (2025, 2026); GMK Center on China EAF utilization; Steel Dynamics filings
Updated
October 2026