Steel Products Prices North America

Weekly Raw Steel Production Rates Continues to Tumble

September 27, 2016

For the week ending September 24, 2016, the American Iron & Steel Institute (AISI) estimated the U.S. steel industry produced 1,605,000 net tons of raw steel, a 1.7 percent decrease over the previous week and a 4.9 percent decrease over the same week one year ago. The estimated capacity utilization rate is 68.6 percent, down from 69.8 percent last week and down from 70.5 percent this time last year.

The last time raw steel production was this low was the week ending January 9, 2016 when 1,594,000 tons were produced at a capacity utilization rate of 66.7 percent.

Estimated total raw steel produced for 2016 YTD is reported to be 65,782,000 tons, down 1.4 percent from the 66,748,000 tons produced during the same period in 2015. The average capacity utilization rate for 2016 YTD is estimated to be 72.1 percent, unchanged from 2015 YTD.

Week-over-week changes per district are as follows: Northeast at 201,000 tons, down 9,000 tons. Great Lakes at 636,000 tons, down 3,000 tons. Midwest at 162,000 tons, up 5,000 tons. South at 541,000 tons, down 15,000 tons. West at 65,000 tons, down 5,000 tons. Total production was 1,605,000 tons, down 27,000 tons.

Note that AISI estimates total capability for Q3 2016 at approximately 30.7 million tons versus 31.4 million tons for the same period last year and 30.4 million tons for Q2 2016.

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.

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