Steel Products Prices North America

Steel Producers Operating at 81.0 Percent of Capacity

Written by Brett Linton

Domestic steel mills achieved a production rate last week not seen in more than six years. U.S. raw steel production for the week ending Oct. 27 totaled 1,898,000 net tons with the mills averaging 81.0 percent of their capability, up from 80.0 percent reported the prior week, according to the American Iron and Steel Institute. The current week’s production represents an 11.3 percent jump from the same period last year when mill utilization was at 73.2 percent. The last time the industry hit 81 percent of capacity was in May 2012.

Adjusted year-to-date producton through Oct. 27 totaled 77,974,000 net tons at a capability utilization rate of 77.7 percent, up 5.0 percent from the same period last year when the capability utilization was 74.3 percent.

Following is production by district for the Oct. 27 week: North East: 217,000 net tons; Great Lakes, 698,000 net tons; Midwest, 202,000 net tons; South, 697,000 net tons; and West, 84,000 net tons, for a total of 1,898,000.

The raw steel production tonnage provided in this report is estimated. The figures are compiled from weekly production tonnage from 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 AISI monthly production report provides a more detailed summary of steel production based on data supplied by companies representing 75 percent of U.S. production capacity.

Note, mill capability for fourth-quarter 2018 is approximately 30.8 million tons, compared to 30.6 million tons for the same period last year and 30.8 million tons for third-quarter 2018.

Brett Linton

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