Leibowitz on Trade: Capacity Utilization and Trade Management

Over the last week or so, statistics have emerged about the surge in capacity utilization of the steel industry in the United States. Since Jan. 1, the American Iron and Steel Industry reports, domestic steelmakers have operated at a capacity utilization rate of 80.1%. In the most recent week reported, ending Aug. 7, capacity utilization was 84.8%, slightly down from 85.0% one week earlier. The capacity utilization has exceeded 80% continuously since late May.

On Aug. 10, the Senate passed the bipartisan infrastructure bill, a landmark compromise on the subject that portends a great deal of government and private spending on roads, bridges, airports and other public spaces. Demand for steel in those sectors promises to expand as these projects move forward.