Steel Products Prices North America

Weekly Raw Steel Production Declines

Written by David Schollaert

August 30, 2022

Raw steel production by US mills was down slightly last week, following back-to-back weekly gains. Domestic output was 1,747,000 net tons in the week ending Aug. 27, while capacity utilization was 79.3%. Despite recent fluctuations, utilization rates haven’t eclipsed the 80% mark in eight weeks, according to the latest data from the American Iron and Steel Institute (AISI).

US output was down 0.5% versus the week prior and down 6.7% versus the same period last year when production was 1,872,000 net tons. Mill capacity utilization last week was 0.4 percentage points below the prior week and 5.5 percentage points below the same period one year ago when utilization was 84.8%.

Adjusted year-to-date production through Aug. 27 totaled 59,715,000 net tons, at an average utilization rate of 80.1%. That’s 3.4% below the same period last year when production was 61,832,000 net tons, though the utilization rate was lower then, at 80.7%, AISI said.

Though output rose in two of five regions last week, it was offset by declines of 7,000 net tons (-0.9%) in the South, 6,000 net tons (-8.7%) in the West, and 3,000 net tons (-1.5%) in the Midwest, week-on-week.

Production by region for the week ending Aug. 27 was as follows: Northeast, 164,000 tons; Great Lakes, 560,000 tons; Midwest, 202,000 tons; South, 758,000 tons; and West, 63,000 tons—for a total of 1,747,000 net tons, down 9,000 net tons from the prior week.

WeeklyRawSteelProd Wk35

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 US production capacity.

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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