Steel Products
AISI Estimated Raw Steel Production & Capacity Utilization Rates
Written by John Packard
January 9, 2013
The American Iron & Steel Institute (AISI) reported their estimated raw steel production data for the week ending January 5, 2013. According to AISI estimates the U.S. steel industry produced 1,756,000 net tons of raw steel last week. This represents a decrease of 3.9 percent compared to the week earlier and is 7.7 percent lower than the same week one year ago.
The AISI estimates the capacity utilization rate to be 72.6 percent. The estimate is based on a much reduced maximum production rate of 30.8 million tons for the 1st Quarter 2013 down from 32.3 million tons from 1Q 2012 and 32.7 million tons for 4Q 2012. So, when you consider the production rate to be 7.7 percent less than one year ago remember the capacity was much higher at that time than it is currently. What is probably more relevant at this time is to compare total tons produce as opposed to capacity utilization rates.
Year to date the AISI estimates total raw steel produced to be 1,756,000 net tons, down 7.7 percent compared to the 1,902,000 tons produced through the same period last year.
The average capacity utilization rate is estimated to be 72.6 percent so far this year, down from 76.9 percent last year (however, read article above regarding reliability of comparisons of capacity utilization rates year-over-year).
The North East district produced 186,000 net tons, down 2,000 tons from the previous week.
The Great Lakes district produced 639,000 net tons, down 44,000 tons from the previous week.
The Midwest district produced 268,000 net tons, up 5,000 tons from the previous week.
The Southern district produced 581,000 net tons, down 31,000 tons from the previous week.
The Western district produced 82,000 net tons, up 1,000 tons from the previous week.
Total production was 1,756,000 net tons, down 71,000 tons from the previous week.
John Packard
Read more from John PackardLatest in Steel Products
Tariffs, ample domestic supply cause importers to shift or cancel HR import orders
Subdued demand is causing importers to cancel hot-rolled (HR) coil orders and renegotiate the terms of shipments currently enroute to the US, importers say. An executive for a large overseas mill said customers might find it difficult to justify making imports buys after US President Donald Trump doubled the 25% Section 232 tariff on imported steel […]
Drilling activity slows in the US, grows in Canada
Oil and gas drilling activity was mixed this week, according to Baker Hughes. US totals slipped for a sixth straight week, while Canada saw a slight bump in activity.
Commerce finds no Korean OCTG shipments below market value
US Department of Commerce (Commerce) review found no South Korean oil country tubular goods (OCTG) exporters or producers sold products below market value
Drilling activity slows further in US and Canada
Oil and gas drilling activity declined again this week in both the US and Canada, according to Baker Hughes.
SMU Community Chat: Zekelman calls for more support for steel consumers
“Unless the administration actually gets serious about levelling the playing field… for consumers of steel, then everything they've done on the steel side is useless."