Weekly Raw Steel Production Steady at 1.68 Million Tons

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.