Steel Products
January Raw Steel Production Much Higher than Weekly Estimates
Written by Brett Linton
March 6, 2013
Written by: Brett Linton
The American Iron & Steel Institute (AISI) reported their final raw steel production numbers for the month of January 2013. This estimation is different than the weekly raw steel production as it is based on 75 percent of the domestic mills reporting vs. 50 percent for the weekly estimates.
The difference in the estimates can be quite dramatic and January is an excellent example. If you use the weekly raw steel production estimates provided by the AISI (and reported by SMU) the January numbers added up to 7.205 million tons which is 12.6 percent lower than the numbers released in their monthly report. This could well be a continuing problem with the weekly AISI numbers released to the public and providing less than accurate data.
Total raw steel production for the month of January was reported to be 8,115,129 net tons with 58.4 percent or 4,739,936 NT being produced by electric arc furnaces, and, 41.6 percent or 3,375,193 NT produced by basic oxygen furnaces. There has been a significant and steady trend away from BOF steelmaking to electric arc furnaces in North American since the 1970’s when BOF ruled the industry. To give you a better feel for the changes we are including a graph which shows production by process since 1950 (note: OHF = open hearth furnace no longer used in North America).
January 2013 production was reported by the AISI to have been 2.7 percent higher than December 2012 raw steel production.
Total raw steel production for 2013 year-to-date is 8,115,129 NT which is 4.5 percent below that of 2012 through the same time period.
Capacity utilization rate for the month of January was reported by the AISI to be 76.5 percent. (Source: AISI)
Brett Linton
Read more from Brett LintonLatest in Steel Products
Drilling activity slows in US but picks up steam in Canada
Oil and gas drilling in the US slowed for a third consecutive week, while activity in Canada hovered just shy of the 19-week high reached two weeks prior.
Domestic mill shipments rise in June: AISI
US steel shipments increased month over month and year over year in June, according to the latest figures from the American Iron and Steel Institute (AISI).
Active rig counts slipped in US, Canada
Drilling activity slowed in the US and Canada last week, according to the latest oil and gas rig count data released by Baker Hughes.
OCTG producers in Canada take aim at Mexico, US, others
Evraz NA and Welded Tube of Canada have lodged an unfair trade complaint against imports of OCTG, including those from USMCA trading partners Mexico and the US.
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.