Weekly Raw Steel Production Loses Momentum

Adjusted year-to-date production through Jan. 22 totaled 5,704,000 net tons, at an average utilization rate of 82.4%. That’s up 4.5% from the same period last year when the utilization rate was 76.6% and production was 5,456,000 net tons, AISI said.

Production fell in four out of five regions last week, with the Great Lakes the sole district to post a week-on-week increase. The largest decrease versus the prior week in total tons was seen in the South, down 22,000 net tons. The Midwest district saw the largest percentage decline, down 3.8% or 8,000 net tons compared to the prior week.

Below is production by region for the week ending Jan. 22: Northeast, 168,000 tons; Great Lakes, 634,000 tons; Midwest, 201,000 tons; South, 720,000 tons; and West, 80,000 tons – for a total of 1,803,000 net tons, down 30,000 net tons from the prior week.

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 first quarter 2022 is approximately 28.3 million tons.

By David Schollaert, David@SteelMarketUpdate.com