Steel Products Prices North America

Weekly Raw Steel Production Declines

Written by Becca Moczygemba

Raw steel production by US mills took a hit last week after a one-week recovery. Last week’s utilization is the lowest since the week of Feb. 13, 2021, and the lowest total output since the week of Jan. 2, 2021. Utilization rates haven’t eclipsed the 80% mark in eleven weeks, the longest run since the pandemic. 

Domestic output was 1,694,000 net tons in the week ending Sept. 16, while capacity utilization was 76.9%, according to the latest data from the American Iron and Steel Institute (AISI).

US output was down 1.7% from the week prior and down 6.4% from last year’s production of 1,839,000 net tons. Mill capacity utilization last week was 1.3 percentage points above the prior week but 6.4 percentage points below the same period one year ago when utilization was 83.3%.

Adjusted year-to-date production through Sept. 16 totaled 64,735,000 net tons, at an average utilization rate of 79.7%. That’s 3.9% below the same period last year when production was 67,369,000 net tons, though the utilization rate was lower then, at 81%, AISI said.

Output fell in all five regions last week. The South saw the sharpest decline in tons WoW, down 13,000 net tons or -1.8%, while the West saw the highest percentage decline, down 2.9% (-2,000 net tons).

Production by region for the week ending Sept. 16 was as follows: Northeast, 142,000 tons; Great Lakes, 562,000 tons; Midwest, 195,000 tons; South, 727,000 tons; and West, 68,000 tons—for a total of 1,694,000 net tons, down 29,000 net tons from the prior week.

WeeklyRawSteelProd Wk38

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 Becca Moczygemba,

Becca Moczygemba

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