Mill Capacity Utilization Drops to 51 Percent

Raw steel production is starting to show the full effect from the pandemic shutdowns and the capacity curtailments by domestic steelmakers. In the week ending May 2, steel production totaled 1,144,000 net tons with the mills operating at an average capability utilization rate of 51.1 percent, down 8.5 percent from the previous week, and down 39.4 percent from the same week last year, reported the American Iron and Steel Institute. Capacity utilization among the mills is down 38 percent since early March before the coronavirus crisis.

The last time the capacity utilization rate was this low was the week ending July 11, 2009 when 1,213,000 tons were produced at a rate of 50.9 percent. The last time the weekly production rate was this low was the week ending June 20, 2009, when 1,133,000 tons were produced at a rate of 47.5 percent. Production is still well above historic lows. The low of the past two decades was production of 800,000 tons and a utilization rate of 33.5 percent in the week ending Dec. 27, 2008.