Prices
U.S. Raw Steel Production Steady in August
Written by Brett Linton
October 6, 2019
U.S. raw steel production in August fell 0.3 percent to 8,152,796 net tons, reports the American Iron and Steel Institute in Washington. August production is in line with the 2019 average of 8,147,242 tons and down 1.1 percent compared to the same month last year.
Broken down by production method, 5,752,849 tons (70.6 percent) were produced by electric arc furnaces (EAFs) and 2,399,947 tons (29.4 percent) were produced by blast furnaces in August. The EAF share of total production was at the second highest level seen in Steel Market Update’s 10-year history (behind October 2017 at 70.7 percent).
August production was 25,767 tons lower than July, and 88,647 tons lower than the same month last year. AISI’s monthly estimates are different than the weekly estimates SMU reports each Tuesday; the monthly estimates are based on over 75 percent of the domestic mills reporting versus only 50 percent reporting for the weekly estimates.
The mill capacity utilization rate for August averaged 79.1 percent, down from 79.4 percent in July, and down from 79.4 percent one year ago. The yearly capacity utilization rate has been adjusted down to 80.7 percent, up from 77.3 percent compared to the same period last year.
The chart below shows total monthly steel production (blue) broken down by electric arc furnace production (green) and blast furnace production (red).
SMU Note: Interactive versions of the raw steel production graphics above can be seen in the Analysis section of our website here. If you need assistance logging into or navigating the website, contact us at info@SteelMarketUpdate.com.
Brett Linton
Read more from Brett LintonLatest 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).