Steel Products
AISI Adjust 1st Quarter Capacity
Written by John Packard
January 9, 2013
The American Iron and Steel Institute (AISI) adjusted their first quarter production rate for the domestic steel industry. In a note attached to their press release they advised:
“Note: Capability for the First Quarter 2013 is approximately 30.8 million tons versus 32.3 million tons for the same period last year and 32.7 million tons for the Fourth Quarter of 2012. Production capability for 2013 reflects the closure of several steelmaking facilities in 2012, new facilities coming on-line and improvements made to existing facilities to increase their capability. When comparing capability utilization rates between 2013 and 2012, the user of this data should take into account the change to capability for 2013 in analyzing the data.”
Steel Market Update spoke with representatives of the AISI regarding the reasons for the changes and we were advised they were due to the closure of the RG Steel facilities as well as capability adjustments at other facilities. For example, the number changed in fourth quarter 2012 vs. 1st quarter 2012 due to the addition of the new EAF at Severstal Columbus.
We did additional research and found other production adjustments were also taken into account.
With the changes, it is more important to compare tons produced week-over-week and year-over-year as opposed to capacity utilization rates. Using the first week of January as an example, in 2012 the U.S. mills produced 1,902,000 tons and during the first week 2013 they produced 1,756,000 tons. The capacity utilization rate will have little use for historical comparison purposes.
John Packard
Read more from John PackardLatest in Steel Products
Final Thoughts
The difference: The spat with Turkey was a big deal for steel. This time, the 50% reciprocal tariff for Brazil – if it goes into effect as threatened on Aug.1 – hits everything from coffee and to pig iron. It seems almost custom-built to inflict as much pain as possible on Brazil.
CRU: US rebar and wire rod prices rise alongside S232 increase
CRU Senior Steel Analyst Alexandra Anderson discusses current market and pricing dynamics for long steel products in the US.
CRU: Excessive global supply could hit rebar mill investments in US
Following the onset of the war in Ukraine in March 2022, concerns about import availability and expectations of rising demand from President Biden’s Infrastructure Bill pushed US rebar prices to record highs. In response, a flurry of new mills and capacity expansions were announced to meet the rise in demand from growth in the construction […]
Steel buyer spirits tempered by soft spot market conditions
Steel sheet buyers report feeling bogged down by the ongoing stresses of stagnant demand, news fatigue, tariff negotiations or implementation timelines, and persistent macroeconomic uncertainty.
CRU: US stainless prices to rise on expanded S232 tariffs
Stainless prices in the US market will rise, following price increases by major US producers. Our base case scenario incorporates higher US prices in the near term, despite the initial negative reaction by the market. US stainless prices will go up in 2025 H2 and will stay elevated in 2026 as tariffs on stainless […]