Prices
Weekly Raw Steel Production Rate Rises to 10+ Year High
Written by Tim Triplett
March 5, 2019
U.S. steel mills reached an average capability utilization rate of 82.8 percent in the week ending March 2. Domestic raw steel production for the week totaled 1,927,000 net tons, up 1.0 percent from the prior week and 5.9 percent from the same period last year.
This is the highest capacity utilization rate seen in over 10 years, since the week ending Sept. 27, 2008, when 1,986,000 tons were produced at a rate of 83.2 percent. This is the highest weekly production seen in 4.5 years, since the week ending Aug. 23, 2014, when 1,932,000 tons were produced at a capacity utilization rate of 80.3 percent.
The U.S. steel industry has produced 16,439,000 tons of steel so far in 2019, a 6.9 percent increase from the same period last year. Mill utilization has averaged 81.1 percent this year, up substantially from the 75.7 percent in 2018, reported the American Iron and Steel Institute.
Following is production by district for the March 2 week: North East: 212,000 net tons; Great Lakes, 716,000 net tons; Midwest, 208,000 net tons; South, 717,000 net tons; and West, 74,000 net tons, for a total of 1,927,000 tons. Production for the week was up in all regions but the South.
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: Capability for first-quarter 2019 is approximately 30.5 million tons compared to 30.0 million tons for the same period last year and 30.8 million tons for fourth-quarter 2018.
Tim Triplett
Read more from Tim TriplettLatest in Prices
SMU Survey: Mills less negotiable on spot prices
Most steel buyers responding to our market survey this week reported that domestic mills are considerably less willing to talk price on sheet and plate products than they were in recent weeks.
Price gap between US HRC, most imports narrows slightly
In dollar-per-ton terms, US product is on average $141/st less than landed import prices (inclusive of the 50% tariff). That’s down from $148/st last week.
SMU price ranges: Sheet ticks higher, plate stable
Sheet steel indices increased across the board this week, while plate prices held steady. All five of SMU’s price indices are higher than they were two weeks ago, and all but one are above levels recorded four weeks ago.
Nucor lifts HR spot price by $10/ton
Nucor has raised its weekly spot list price on hot-rolled coil by $10 per short ton (st) after keeping it unchanged since Aug. 25.
Atlas Tube up $50/ton following NLMK USA sheet price hike
Atlas Tube, in a leading move, said it aims to increase prices for mechanical tubing, hollow structural sections (HSS), and piling products by at least $50 per short ton (st).