Steel Products Prices North America

Average Mill Utilization Back Up to 85.0%

Written by David Schollaert

August 24, 2021

Weekly raw steel production by U.S. mills edged back up after successive decreases the past two weeks. The average utilization rate was 85.0% while production was 1,877,000 net tons in the week ending Aug. 21, according to the American Iron and Steel Institute (AISI).

The slight increase in domestic production edged utilization back up to 85.0% as U.S. mills continue to produce steel at near capacity. Weekly output rose 0.4% compared to the week prior when production was 1,869,000 net tons and average utilization was 84.7%. Last week’s production total represents a 27.2% increase from year-ago levels, when output was reduced to 1,476,000 net tons and utilization to 65.9% because of the pandemic.

Adjusted year-to-date production through Aug. 21 was 60,173,000 net tons, at an average utilization rate of 80.4%. That’s up 19.8% from the same period last year when the utilization rate was 66.6% and production was 50,243,000 net tons, AISI said.

Production increased in just two out of the five districts. Despite decreases in the North East, Great Lakes and Midwest districts, a 16,000-ton gain in the South pushed output over the prior week’s total. Following is production by district for the Aug. 21 week: North East, 149,000 tons; Great Lakes, 636,000 tons; Midwest, 201,000 tons; South, 815,000 tons; West, 76,000 tons, for a total of 1,877,000.

WeeklyRawSteelProd Wk34

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. 

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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