Steel Products Prices North America
U.S. Steel Production Up 20% So Far This Year
Written by Tim Triplett
November 29, 2021
With almost 11 months in the record books, domestic raw steel production is up nearly 20% versus last year when the market was dogged by various pandemic disruptions.
Adjusted year-to-date production through Nov. 27 totaled 86,274,000 net tons – up 19.7% from the 72,053,000 net tons during the same period in 2020. The average mill utilization rate jumped by nearly 14 percentage points over the same period, from 67.7% to 81.6%, reported the American Iron and Steel Institute (AISI).
Production for the week ending Nov. 27 inched lower to an estimated 1,837,000 net tons, a 1.3% decrease from the prior week but up 13.3% from the same period last year. Mill capability utilization, at 83.2%, remains at a healthy level.
Raw steel output declined in four of the five regions last week, all except the Great Lakes, by a net total of 24,000 tons. Below is production by region: Northeast, 170,000 tons; Great Lakes, 625,000 tons; Midwest, 199,000 tons; South, 768,000 tons; and West, 75,000 tons – for a total of 1,837,000, AISI reported.
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 Tim Triplett, Tim@SteelMarketUpdate.com
Tim Triplett
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