Steel Products Prices North America
Weekly Raw Steel Production Steady at 1.68 Million Tons
Written by Brett Linton
April 26, 2016
For the week ending April 23, 2016, the American Iron & Steel Institute (AISI) estimated the U.S. steel industry produced 1,684,000 net tons of raw steel, a 0.5 percent decrease over the previous week but a 2.1 percent increase over the same week one year ago. The estimated capacity utilization rate is 72.0 percent, down from 72.4 percent last week but up from 69.8 percent this time last year (note that the capacity utilization rates in 2016 are based on new lower total capabilities with the removal of US Steel Fairfield from the mix.)
We are learning from the steel mills as they report earnings that flat rolled steel capacity utilization rates exceeded 80 percent and are being reported as high as 88 percent (SDI) so do not be confused with the AISI statement indicating utilization rates of 72 percent. The AISI “estimate” is based on all products, including long products. It also includes capacity which is currently idle but available to be turned back on.
Estimated total raw steel produced for 2016 YTD is reported to be 28,213,000 tons, down 2.2 percent from the 28,843,000 tons produced during the same period in 2015. The average capacity utilization rate for 2016 YTD is estimated to be 70.6 percent, down from 71.5 percent for 2015 YTD.
Note that the AISI estimates capability for Q2 2016 to be 30.4 million tons versus 30.7 million tons for the same period last year and 30.4 million tons for the Q1 2016.
Week-over-week changes per district are as follows: Northeast at 211,000 tons, up 5,000 tons. Great Lakes at 632,000 tons, down 7,000 tons. Midwest at 182,000 tons, down 6,000 tons. South at 570,000 tons, down 1,000 tons. West at 89,000 tons, unchanged. Total production was 1,684,000 tons, down 9,000 tons.
About Weekly Raw Steel Production Data
The weekly raw steel production tonnage provided by the AISI is estimated. The figures are compiled from weekly production tonnage provided by 50 percent of the domestic producers combined with monthly production data for the remainder. Therefore, this report should be used primarily to assess production trends. The monthly AISI production report provides a more detailed summary of steel production based on data supplied by companies representing over 75 percent of U.S. production capacity.
SMU Note: Below is a graphic showing the weekly raw steel production history. To use the graphs interactive capabilities, you must view it on our website. You can do this by clicking here. If you need help navigating the website or need to know your login information, contact us at info@SteelMarketUpdate.com or by calling 800-432-3475.
Brett Linton
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