Prices
Raw Steel Production Increases for Seventh Week in a Row
Written by Tim Triplett
January 21, 2020
Domestic steelmakers increased their raw steel production for the seventh week in a row, raising the average capability utilization to 82.7 percent in the week ending Jan. 18. Raw steel production totaled 1,928,000 net tons, up 0.3 percent from the previous week and up 3.0 percent compared with the same week last year, reported the American Iron and Steel Institute.
The last time weekly production was this high was the week ending May 11, 2019, when 1,927,000 tons of steel were produced at a capability utilization rate of 82.8 percent.
Adjusted year-to-date production through Jan. 18 totaled 4,936,000 net tons at a utilization rate of 82.3 percent. That’s up 2.6 percent from the same period last year when the rate was 80.4 percent.
Following is production by district for the Jan. 18 week: North East: 216,000 net tons; Great Lakes, 686,000 net tons; Midwest, 208,000 net tons; South, 730,000 net tons; and West, 88,000 net tons, for a total of 1,928,000 tons. Production for the week was up in every region except for small declines in the Midwest and West.
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 2020 is approximately 30.3 million tons compare with 29.9 million tons for the same period last year and 30.4 million tons for fourth-quarter 2019.
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).