Prices
Raw Steel Production Up 1.4% Last Week
Written by David Schollaert
May 18, 2021
Raw steel production by U.S. mills totaled 1,799,000 in the week ending May 15, up 1.4% compared to the week prior when production totaled 1,774,000 net tons, according to the American Iron and Steel Institute (AISI). The mill utilization rate last week averaged 79.2%, up from 78.1% the week before and up 47.1% from the same period last year when production was 1,223,000 net tons and mill utilization was just 54.6% due to COVID-induced disruptions.
According the data compiled by AISI, the market is still lagging pre-pandemic levels. When comparing the latest data to the comparable pre-COVID-19 period in 2019, current production is down 5.3%, more than 100,000 net tons. Adjusted year-to-date production through May 15 was 33,888,000 net tons, at an average utilization rate of 77.5%. That’s up 7.3% from the same period last year when the utilization rate was 69.9% and production was 31,588,000 net tons, AISI said.
Following is production by district for the May 8 week: North East, 151,000 net tons; Great Lakes, 616,000 net tons; Midwest, 187,000 net tons; South, 767,000 net tons; and West, 78,000 net tons, for a total of 1,799,000 net tons. Production was up by 25,000 net tons compared to the week prior. All districts posted increased outputs week-on-week.
Note: The Raw Steel production tonnage provided in this report is estimated. The figures are compiled from weekly production tonnage provided from 50% 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 production report “AIS 7”, published monthly and available by subscription, provides a more detailed summary of steel production based on data supplied by companies representing 75% of U.S. production capacity. Note: Capability for second-quarter 2021 is approximately 29.5 million tons compared to 29.1 million tons for the same period last year and 29.1 million tons for the first quarter of 2021.
By David Schollaert, David@SteelMarketUpdate.com
David Schollaert
Read more from David SchollaertLatest 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).