Steel Products Prices North America

AISI: Mill Utilization at Highest in More Than a Decade

Written by David Schollaert

July 13, 2021

U.S. mills produced steel at an average utilization rate of 83.6% last week, the highest rate in more than a decade as they scramble to keep up with the strong demand in today’s economy. Raw steel production by U.S. mills totaled 1,852,000 net tons in the week ending July 10, up 0.5% compared with the week prior. Mill capacity utilization rose 0.6% week on week, reported the American Iron and Steel Institute (AISI). 

Last week’s output represents a 37.2% increase from year-ago levels, when production was 1,350,000 net tons and utilization was 60.3% as steel demand was still impacted by the pandemic.

At 83.6%, last week’s average mill utilization reached its highest level in 13 years. Mill utilization hit a most recent high of 85.0% in the week ending Sept. 20, 2008, however. Last week’s production is still 9.0% less, and year-to-date production 7.1% less, compared to that 2008 week. Note that mill utilization has been rising as AISI has adjusted its capacity data to better reflect current market conditions; capacity figures used to calculate utilization rates have been lowered by 2.6%, from 118.1 million tons to 115.1 million tons.

Adjusted year-to-date production through July 10 was 48,748,000 net tons, at an average utilization rate of 79.2%. That’s up 16.7% from the same period last year when the utilization rate was 66.7% and production was 41,765,000 net tons, AISI said.

Following is production by district for the July 10 week: North East, 139,000 net tons; Great Lakes, 642,000 net tons; Midwest, 191,000 net tons; South, 804,000 net tons; and West, 76,000 net tons, for a total of 1,852,000 net tons. Production was up 17,000 net tons compared to the week prior. Decreased output in the North East, Great Lakes, and Midwest districts was offset by increased output in the South. The West was unchanged week on week.

WeeklyRawSteelProd Wk28

Note: The raw steel production tonnage provided in this report is estimated. The figures are compiled from weekly production tonnage provided by approximately 50% of the domestic production capacity combined with the most recent 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. Given the large number of changes to steelmaking capability in the current rapidly evolving market environment, AISI is undertaking a comprehensive review of its raw steel production and capability utilization statistics to ensure that they accurately reflect market conditions. Any updates to capability will be phased in over several weeks. Capability for the second quarter 2021 is approximately 29.3 million tons.

By David Schollaert, David@SteelMarketUpdate.com

David Schollaert

David Schollaert is a senior analyst for Steel Market Update. David joined SMU after more than a decade in the metals and mining industry in a myriad of different roles. Much of his early experience and expertise were within the coverage and analysis of steel-making raw materials and served previously as senior editor of the CRU Prices Service. Most recently, however, before his return to market analysis, David held roles as a metals buyer and an operations manager for raw material suppliers. Based in CRU’s Pittsburgh office, David can be reached at david@steelmarketupdate.com or 724-720-1008.

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