Raw Steel Output Dips Again

Domestic mill capability utilization rate was 75.2% last week, down from 77.3% the previous week. Utilization also saw a drop from the same period one year ago when it was 78.1%.

The last time the capability utilization rate was this low was mid-April when it was 75%, right around the same time sheet prices started to fall. 

The adjusted year-to-date production through July 8 was 45,905,000 tons at a capability utilization rate of 75.8%. That is down 2.7% from 47,199,000 tons from the same period one year ago when the capability utilization rate stood at 80%, AISI said.

Production by region for the week ending July 8 is below. (Note: week-over-week changes are in parentheses.)

• Northeast – 135,000 tons (down 2,000 tons)
• Great Lakes – 553,000 tons (down 10,000 tons)
• Midwest – 208,000 tons (down 7,000 tons)
• South – 750,000 tons (down 8,000 tons)
• West – 65,000 tons (down 2,000 tons)

Note: The raw steel production tonnage provided in this report is estimated. The figures are compiled from weekly production tonnages 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@steelmarketupdate.com