The American Iron & Steel Institute (AISI) recently reported final U.S. raw steel production estimates for the month of September 2016. The monthly estimates are different than the weekly estimates we report in our Tuesday issues; the AISI bases the monthly estimates on over 75 percent of the domestic mills reporting vs. only 50 percent for the weekly estimates.
Total raw steel production for the month of September was reported to be 6,819,599 net tons with 4,540,221 tons being produced by electric arc furnaces (EAF) and 2,279,378 tons produced by blast furnaces. September raw steel production was reported to be 508,935 tons or 6.9 percent lower than the previous month and 408,279 tons or 5.6 percent lower than the same month last year.
Compared to the first nine months of 2015, 2016 year-to-date (YTD) production is down 1.5 percent to 65,683,521 tons. The table below shows that 6 of the 11 state-groups reported decreased YTD production compared to the same period last year.
The capacity utilization rate for the month of September 2016 was reported to be 68.0 percent, down from 70.8 percent in August and down from 70.5 percent reported in September 2015. Note that there has been a reduction in available steel capacity from 2015 to 2016, making the capacity utilization rate higher in 2016 for the same amount of steel produced in 2015.
SMU Note: An interactive graphic of our raw steel production history can be seen in the Analysis section of our website here. If you need help logging into the website or navigating through it, please contact us at info@SteelMarketUpdate.com or 800-432-3475.
Brett LintonRead more from Brett Linton
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