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

US and Canadian rig counts stabilize
US counts continue to hover just above historic lows, while Canadian figures remain comparatively healthy.

Plate market sources critique mill hikes amid current market conditions
Following spot market plate price increase notices issued by domestic mills this past week, participants are contemplating the rationale behind the increases and whether they will stick. Some sources anticipate that current market conditions will shift in November and believe the increases may set a new "pricing floor."

Oregon Steel Mills lifts plate prices by $60/ton
Oregon Steel Mills has joined other producers in announcing a price increase of at least $60 per short ton on steel plate.

CRU: Construction of pilot plant for green steel process starts
Voestalpine and partners have begun building an industrial-scale Hy4Smelt demonstration plant in Linz, Austria, which they hope will become key in the decarbonization of steel.

Rig count increases in the US and in Canada
Oil and gas drilling activity increased this week in the US and Canada for the third consecutive week, according to the latest Baker Hughes rig count data. US counts continue to hover just above historic lows, while Canadian figures remain comparatively healthy.