Steel Products Prices North America
Mill Capacity Utilization Inches Downward
Written by Tim Triplett
June 11, 2019
The U.S. mill capability utilization rate declined slightly for the fourth week in a row to 80.6 percent in the week ending June 8. Raw steel production dipped by another 0.8 percent from the previous week to 1,875,000 net tons. Current mill utilization is down about 2.8 percentage points from its peak earlier this year. The week’s production still represented a 3.3 percent increase from the same period last year, reported the American Iron and Steel Institute.
Adjusted year-to-date production through June 8 totaled 43,110,000 net tons at an average capability utilization rate of 81.5 percent, a tonnage increase of 6.0 percent from the same period last year when the utilization rate was 76.7 percent
Following is production by district for the June 8 week: North East: 214,000 net tons; Great Lakes, 720,000 net tons; Midwest, 186,000 net tons; South, 684,000 net tons; and West, 71,000 net tons, for a total of 1,875,000 tons. Production was flat to down slightly in every region but the Northeast, which saw a small increase.
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 second-quarter 2019 is approximately 30.3 million tons compared to 30.5 million tons for the same period last year and 29.9 million tons for first-quarter 2019.
Tim Triplett
Read more from Tim TriplettLatest in Steel Products Prices North America
Thin demand keeps plate prices hovering at lowest levels since February
Participants in the domestic plate market say spot prices appear to have hit the floor, and they continue to linger there. They say demand for steel remains thin, with plate products no exception.
SMU Price Ranges: HR crawls back to $800/ton
SMU’s HR price stands at $800/st on average, up $5/st from last week. The modest gain came as the low end of our range firmed, and despite the high end of our range declining slightly.
SMU successfully completes IOSCO review
SMU has successfully completed an external review of all our prices. The review has concluded that they algin with principles set by the International Organization of Securities Commissions (IOSCO).
Domestic plate prices could heat up despite so-so demand, market sources say
Some sources also speculated that plate could see further price increases thanks to modest but steady demand, lower imports, mill maintenance outages, and end markets less immediately affected by tariff-related disruptions.
SMU Price Ranges: HR holds, galv slips amid competing market narratives
SMU’s sheet and plate prices see-sawed this week as hot-rolled (HR) coil prices held their ground while prices for galvanized product slipped.