Prices
Raw Steel Output, Utilization Drop Further: AISI
Written by David Schollaert
November 7, 2022
Raw steel production by US mills continued to slide for a third consecutive week, keeping utilization and output at their lowest levels in nearly two years, according to the latest data from the American Iron and Steel Institute (AISI). Capability utilization has now remained below the 80% mark for 17 straight weeks.
Domestic steel output was 1,640,000 net tons during the week ending Nov. 5, the lowest level since Dec. 26, 2020, when it totaled 1,600,000 net tons. Output was down 1.4% from the week prior and down 10.3% from 1,828,000 tons during the same week last year.
Capability utilization was 73.5% last week — down one percentage point from 74.5% the previous week and down 9.3 percentage points from the same period one year ago when the rate was 83.2%.
Adjusted year-to-date production through Nov. 5 now stands at 76,347,000 tons, with an overall utilization rate of 78.9%. Production was 4.8% below the same period last year when it was 80,220,000 tons and capability utilization was at 81.2%, AISI said.
Output fell in two out of the five regions last week: The Great Lakes (-27,000 tons, or -4.9%) and the South (-5,000 tons, or -0.7%). Production rose in the Midwest (+6,000 tons, or +3.4%), the West (+2,000 tons, or 3%), and the Northeast (+1,000 tons, or 0.7%).
Production by region for the week ending Nov. 5 was as follows: Northeast, 145,000 tons; Great Lakes, 529,000 tons; Midwest, 182,000 tons; South, 716,000 tons; and West, 68,000 tons — for a total of 1,663,000 tons, down 23,000 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 US production capacity.
By David Schollaert, David@SteelMarketUpdate.com
David Schollaert
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