Mill Capacity Utilization Stuck Around 79 Percent

U.S. mills have cranked out steel at a capability utilization rate of 79.0 percent or better for nine weeks in a row, but only briefly have breached the 80 percent mark. U.S. raw steel production for the week ending Oct. 6 totaled 1,851,000 net tons with the mills operating at 79.0 percent capacity, reported the American Iron and Steel Institute.

Utilization peaked a month ago at 80.2 percent, which was the highest level in five years except for mid-August 2014 when it hit 80.3 percent. The domestic industry aspires to keep overall steel production above the 80 percent level to assure sustained profitability, but so far has fallen short of that goal.