Steel Products Prices North America

Weekly Raw Steel Production Down 1.0%

Written by David Schollaert

Raw steel production by U.S. mills slipped for the third straight week, now down five out of the last six weeks. Domestic raw steel production was estimated at 1,841,000 net tons in the week ending Nov. 6, while the average mill utilization rate dipped to 83.4%, its lowest reading since the week of July 10, according to the American Iron and Steel Institute (AISI).

Output was down 1.0% compared to the week prior when production was estimated at 1,860,000 net tons and average utilization was 84.3%. Last week’s production total represents a 14.3% increase from year-ago levels as the market was regaining its footing from the pandemic-related blows. Production by U.S. mills then was 1,611,000 net tons and utilization was 72.8%.

Adjusted year-to-date production through Nov. 6 totaled 80,720,000 net tons, at an average utilization rate of 81.5%. That’s up 20.1% from the same period last year when the utilization rate was 67.3% and production was 67,189,000 net tons, AISI said.

Production fell in all five regions last week, with the largest decrease coming from the Great Lakes region, at 6,000 tons. Below is production by region for the week ending Nov. 6: Northeast, 176,000 tons; Great Lakes, 612,000 tons; Midwest, 199,000 tons; South, 776,000 tons; and West, 78,000 tons – for a total of 1,841,000 net tons, down 19,000 net tons from the prior week.

 WeeklyRawSteelProd Wk45.2

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 fourth quarter 2021 is approximately 29.0 million tons.

By David Schollaert,

David Schollaert

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